ETFs
South Korean think tank warns against crypto ETFs — TradingView News
A think tank focused on finance and economics in South Korea has opposed the East Asian nation’s approval of spot crypto exchange-traded funds (ETFs).
Bo-mi Lee, a researcher at the Korea Institute of Finance, argued in an article that Bitcoin was being spotted BTCUSD and the ether 
Crypto Spot ETFs Could Harm Financial Stability
The researcher argued that the introduction of spot crypto ETFs in the country could harm its financial stability. According to the document, when spot ETFs are approved – and digital asset prices rise – a significant amount of capital will flow into the crypto market.
Lee argued that this would lead to inefficiencies in resource allocation. The researcher also noted that the liquidity of financial markets and the health of financial companies would deteriorate when prices fall.
For this reason, the researcher said the country needs to do more research into the potential losses and benefits of introducing spot crypto ETFs. Currently, the researcher claims that the losses will be greater than the benefits that could be obtained.
Lee also said that there is still a lack of understanding of the value of digital assets and that the assets exhibit high volatility. The researcher argued that the introduction of such products would lead market participants to believe that they are “proven assets”.
Furthermore, Lee said the risks will increase. The researcher said regulatory measures must be well prepared to reduce these risks. Lee added that the impact of digital assets on investors and the financial market is still uncertain. Regulators must prepare sufficient measures before introducing spot crypto ETFs.