South Korean think tank KIF: Cryptocurrency spot ETFs do more harm than good to the country's economy

Odaily News South Korea's financial research agency said in its latest report that the introduction of cryptocurrency spot ETFs could bring more troubles than benefits to the country's economy. "Allowing (such) products could lead to side effects such as inefficient resource allocation, increased risks associated with cryptocurrencies in financial markets, and weakened financial stability," the Korea Institute of Finance (KIF) said in a report last Sunday. The agency explained that crypto ETFs could cause the crypto market to intercept a large amount of cash flow from the local financial market, resulting in reduced investment in the local industry. KIF added that this could make local financial markets more vulnerable to crises in the crypto industry, leading to increased investor distrust of the market and regulators. (The Block)