An Analysis of the South Korean Crypto Market’s Reaction to the SEC’s Approval of Bitcoin ETFs

An Analysis of the South Korean Crypto Market’s Reaction to the SEC’s Approval of Bitcoin ETFs

The recent approval of 11 Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) had a significant impact on the South Korean crypto-related KOSDAQ stocks. This article will analyze the market reaction to this news and discuss the implications for the South Korean crypto industry.

On January 11, several venture capital firms with stakes in major South Korean crypto exchanges emerged as the biggest winners in the market. Woori Technology Investment witnessed an impressive 30% increase in its stock price, reaching a 12-month high. Similarly, Hanwha Investment & Securities experienced a 30% day-on-day surge in share price. Both firms own shares in Dunamu, the operator of Upbit, South Korea’s largest virtual currency exchange.

Another notable gainer was T Scientific, which saw a share price rise of over 20% on the same day. Its parent company, Wizit, also enjoyed a significant 29.89% increase in stock price. T Scientific holds a stake in Bithumb Korea, the operator of Bithumb, Upbit’s closest rival. These positive market movements suggest the potential for growth in the South Korean crypto industry.

Bithumb, one of the prominent South Korean crypto exchanges, has expressed its plans to launch on the Korean Exchange in 2025. The surge in share prices of firms related to the crypto industry is encouraging news for Bithumb. The company is likely hoping that this positive sentiment will contribute to the success of its future listing.

Apart from the major gains observed in venture capital firms and crypto exchanges, other blockchain and crypto-related companies also experienced notable increases in their stock prices. Daesung Private Equity recorded a substantial rise of 29.93%. The company launched an $83 million metaverse fund at the end of 2022 in collaboration with other Daesung group firms, the Industrial Bank of Korea, and Shinhan Capital.

Atinum Investment, another winner in the market, witnessed a 15.43% rise in share price. The company had previously led a $6.5 million Series A investment into Team Blackbird, the operator of the US-based data analytics platform CryptoQuant. Additionally, Galaxia MoneyTree and other blockchain and fintech firms also saw modest gains, with increases of over 7%.

The approval of 11 Bitcoin spot ETFs by the SEC had a significant impact on the South Korean crypto market. The surge in share prices of venture capital firms and crypto exchanges suggests growing investor confidence in the industry. This positive sentiment bodes well for Bithumb’s future plans to launch on the Korean Exchange. As the crypto industry continues to evolve, South Korea may establish itself as a prominent player in the global market.

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