The largest bank in South Korea, Kookmin Bank is set to launch the country’s first cryptocurrency exchange-traded fund (ETF). The country’s first crypto investment vehicle will be launched by KB bank. The idea has been verified by Honggun Kim, the CEO of KB Bank. The creation of the ETF is in reaction to the market’s growing interest in cryptocurrency.
South Korea is set to launch the country’s first cryptocurrency exchange-traded fund (ETF)
South Korea’s largest financial institution by net profit, Kookmin Bank (KB), is set to launch its first cryptocurrency investment fund. KB had $520 billion in total assets as of September 2021.
On February 21, KB announced the formation of a Digital Asset Management Preparatory Committee to examine digital asset and artificial intelligence investment fund product and strategy capabilities.
In addition, the bank plans to create crypto exchange-traded funds (ETFs) and other products in the future. The board will also assess the investment funds’ risk and compliance issues. In reality, KB’s Head of Index Quant Management Honggun Kim acknowledged these plans in the bank’s official statement.
He stated, “We will launch a virtual asset-themed equity fund, etc. We plan to publish periodicals as well.” Similarly, there are currently proposals to develop a crypto investment index fund with the help of an Outsourced Chief Investment Officer (OCIO). OCIO is an outsourced investment management firm that offers primary investment guarantees. Furthermore, the OCIO fund can be used as a retirement plan.
Furthermore, in response to the market’s rising acceptance of crypto and non-fungible token (NFT) investments, KB is introducing a new investment fund for its consumers.
The current objective is to develop a crypto investment index fund and a fund that would use an outsourced chief investment officer (OCIO), also known as outsourced investment management, to give main investment guarantees. The OCIO fund can also be utilized to fund retirement pensions.
Two OCIOs to consider are Grayscale and Fidelity Asset Management, both of which provide crypto investment funds. Last December, Fidelity Canada debuted a spot Bitcoin ETF, albeit it has yet to be licensed in the United States.
KB is responding to a market that has become increasingly receptive to crypto and nonfungible token (NFT) investments by introducing a new investment fund for its customers. Shinhan Bank, a close competitor, has dedicated an entire portion of its mobile banking app to assisting customers with NFT collections on Klaytn, the country’s top blockchain.
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