The recent approval of spot Ethereum exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) has put significant pressure on Korean financial regulators to reconsider their stance on digital assets. Unlike their U.S. counterparts, the Korean Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have been cautious about introducing crypto asset trading on traditional securities markets.

The SEC's decision to greenlight Ethereum ETFs, following earlier approval of Bitcoin ETFs, marks a significant step in bridging the gap between traditional finance and the digital asset industry. ETFs allow investors to gain exposure to a basket of securities, making them a popular investment option.

In contrast, Korean regulators have been strict about the types of assets that can be linked to ETFs. According to the FSC, ETFs must only be linked to traditional underlying assets such as established financial instruments, securities, international currencies, and commodities. This has led to criticism from digital currency data providers like Xangle, which describes the ban on digital assets in the traditional securities market as "outdated" and in need of revision.

The head of the Korean Stockholders’ Alliance, Jung Eui-jung, has also emphasized the importance of Seoul following the U.S.'s example and approving Bitcoin and Ethereum ETFs. Jung warns that if Seoul regulators continue to make little progress while the U.S. advances, investors might shift their funds to U.S. markets, stating that it will be a "matter of time for the U.S. to fully open the door for other less-traded cryptocurrencies."

The pressure on Korean regulators to approve crypto ETFs is mounting, and it remains to be seen whether they will follow the U.S. example and take a more open approach to digital assets in the traditional securities market.