A finance and economics-focused think tank in South Korea has raised concerns about the approval of spot crypto exchange-traded funds (ETFs) in the country. The Korea Institute of Finance researcher, Bo-mi Lee, highlighted that global results of spot Bitcoin (BTC) and Ether (ETH) ETFs show more losses than benefits. Lee emphasized that introducing spot crypto ETFs could disrupt financial stability by causing capital inflow during price surges, leading to resource allocation inefficiencies. The researcher also pointed out the risks of market liquidity and financial health deterioration during price declines. Lee stressed the need for thorough research on potential losses and benefits before implementing spot crypto ETFs, as the current understanding of digital asset value and high volatility pose uncertainties. Regulatory measures must be strengthened to mitigate risks and protect investors and the financial market from the impacts of spot crypto ETFs. Read more AI-generated news on: https://app.chaingpt.org/news
