South Korea is inching closer to approving the launch of a digital asset (crypto) fund.
According to a local report, the local Financial Supervisory Services (FSS) is ready to give a go-ahead to the launch of an investment fund that gives investors exposure to digital assets.
A first for South Korea
On May 2, the regulatory authority plans to greenlight the crypto fund, which would be a first for Korea.
An official from the financial investment industry quoted by the local media said: “The FSS plans to approve the fund on the 2nd.”
The investment fund will be managed by Hanhwa Asset Management, one of the top three asset management companies in Korea with US$80.2 billion in assets under management (AUM).
The asset management firm is an investment arm of a leading insurance giant in South Korea. The launch of this fund indicates the increasing institutional appetite for cryptocurrencies in the Asian country.
Growing institutional demand
The institutional demand for bitcoin and cryptocurrency is growing amid a raging bull market. Accordingly, financial institutions have noticed the new trends and are joining the crypto bandwagon.
In fact, Cryptonary recently reported that JPMorgan, one of the largest investment banks in the United States, is planning to provide its wealthy clients with access to Bitcoin funds.
Moreover, the investment bank will work with crypto firm NYDIG to roll out this service. JPMorgan will be the third U.S. bank to launch this service as it follows in the footsteps of Morgan Stanley and Goldman Sachs.
Evidently, the three investment banks previously dismissed bitcoin and the crypto industry as a whole. In addition, JPMorgan CEO Jamie Dimon is on record for saying bitcoin is a bubble.
Bitcoin on the rise
Bitcoin’s recent rise has earned much-needed credibility in mainstream finance. This has prompted even publicly traded companies to invest in digital assets.
Indeed, the leading digital asset has a market cap of over $1 trillion. That said, its dominance of the entire market has recently fallen below 50%.