ChainCatcher news, according to The Block, a South Korean financial research institution stated in its latest report that the introduction of cryptocurrency spot ETFs may bring more trouble than benefits to the country's economy.The Korea Institute of Finance (KIF) mentioned in a report last Sunday: "Allowing such products may lead to side effects, such as inefficient resource allocation, increased risks associated with cryptocurrencies in the financial market, and weakened financial stability."The institution explained that crypto ETFs could intercept a significant amount of cash flow from the local financial market to the crypto market, resulting in reduced investment in the local industry. KIF added that this could make the local financial market more susceptible to crises in the crypto industry, leading to increased distrust among investors towards the market and regulators.

ChainCatcher news, Han Tongli, CEO of Harvest International, revealed that the company is preparing to issue collateralized financial products based on cryptocurrency spot ETFs. The current goal is to achieve the highest trading volume for its cryptocurrency spot ETF in Hong Kong by the end of this year. Data shows that the first-day trading volume of Harvest International's cryptocurrency spot ETF ranked second among three fund companies, with ChinaAMC ranking first.Han Tongli stated that due to skepticism about Hong Kong's commitment to virtual assets, many investors are still on the sidelines, which puts pressure on the trading volume of cryptocurrency spot ETFs. However, Han Tongli added that he is confident that Hong Kong's cryptocurrency ETFs can grow to twice the size of products in the United States, although he did not mention when this milestone could be achieved.

ChainCatcher news, according to The Block, South Korea's opposition party—the Democratic Party plans to push its campaign promise to make spot cryptocurrency funds accessible domestically. The Democratic Party won 175 out of 300 seats in the April elections, becoming the dominant force in the National Assembly. The party has committed to urging local financial institutions to launch cryptocurrency spot ETFs and allowing retail investors to purchase these funds through tax-exempt accounts.It is reported that the Democratic Party plans to request the Financial Services Commission (FSC) to re-examine Bitcoin spot ETFs at the 22nd National Assembly meeting in June, in order to open such products in the local market.Currently, the FSC has not allowed the issuance or trading of Bitcoin spot ETFs, as the FSC believes that Bitcoin or other cryptocurrencies cannot serve as legitimate underlying assets for such products. The Democratic Party is also considering options to amend existing financial regulations to address the FSC's potential continued refusal.

ChainCatcher news, according to Blue Whale Finance, in addition to Bosera, Huaxia, and Harvest, the Hong Kong local institution Value Partners also applied to issue a virtual currency spot ETF, but ultimately did not appear on the approved list.Insiders said that Value Partners voluntarily withdrew after applying, citing inadequate preparation, tight timelines, and insufficient manpower. Moreover, compared to the other three companies, Value Partners primarily engages in active management in Hong Kong, making its ETF business relatively weak, so they plan to wait and see.