South Korea may launch Bitcoin ETFs early

Bitcoin ETF has already marked a pivotal moment in the US, with the Securities & Exchange Commission approving eleven applications effective January 11, 2024. Hong Kong could be the next to launch a Bitcoin ETF. South Korea is on the list too, except it is now considering making an early move in east Asia. Hong Kong is likely to give the green light by the end of this month. There is no tentative timeline for South Korea. However, pulling the launch closer still works wonders for the Asian market.

The move comes at a time when the competition among players is brightening up. This pertains to crypto fees charged by exchange platforms.

Up until now, Upbit has had the majority of the market share to its name, coming closer to 82% in the past three years. The emergence of new competitors is altering the game’s dynamics and posing a challenge to its former dominance. An immediate effect was very unlikely, and that is precisely what has happened.

Korbit and Bithumb aimed to attract attention with a zero-fee campaign, but that has drained their boats into deep oceans. Bithumb, for one, has withdrawn the campaign after recording a 60% drop in revenue. Korbit did not feel much of it and will average a market share of around 1% in 2024.

The most effective strategy was for Bithumb to accomplish a threefold increase in market share. This does not overshadow the decline in revenue, but it does provide the community with a glimmer of hope. Coinone, which has only recently been established, is depicted alongside Korbit on the market share graph.

Korean markets are leveraging two key aspects right now: an improvement in the macroeconomic environment and rising competition in the industry. Together, both factors have boosted trade volume in South Korea’s markets. An improvement in the macroeconomic aspect is evident from the fact that the South Korean Won surpassed the US Dollar in the first quarter of 2024 in terms of cumulative trade volume.

The number stood at $456 billion, with the USD rallying at $445 billion. The euro follows the rank with $59 billion, ahead of the Turkish lira at $50 billion. The Japanese yen is fifth on the list with $42 billion.

KRW declined in the early days of April 2024, but the approval of Spot Bitcoin ETF and Ether ETF in Hong Kong is likely to boost economic sentiments in APAC markets—Asia-Pacific markets.

The development comes at a time when the crypto market has been bearish. BTC, the dominant token in the sphere, is down by 5.17% in the last 24 hours, exchanging hands at $63,247.91. Ether is at $3,083.25, with a slip of 5.48% during the same time window when the article is being drafted.

An early launch of the Bitcoin ETF will bring South Korea and Hong Kong to the same dinner table, ultimately benefiting the Asian market with a trend that others can consider exploring.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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