Korea Plans Spot Bitcoin ETF Launch as US Funds See Record Inflows

South Korea is moving to allow digital asset spot exchange-traded funds within 2026, positioning itself alongside the United States and Hong Kong in the growing crypto ETF market. The announcement comes as US spot Bitcoin ETFs record explosive inflows, exceeding $1.2 billion in just the first two trading days of the year.

The Korean government unveiled its ‘2026 Economic Growth Strategy’ on January 5th, with the Financial Services Commission leading the initiative. Until now, Korea has not recognized digital assets like Bitcoin as underlying assets for ETFs. Spot ETF trading has therefore been unavailable in the country.

South Korea said in its 2026 Economic Growth Strategy that it plans to allow spot digital asset ETFs, including spot Bitcoin ETFs, this year, while the Financial Services Commission (FSC) accelerates phase-two digital asset legislation. The government cited active spot Bitcoin…

— Wu Blockchain (@WuBlockchain) January 9, 2026

Meanwhile, US Bitcoin ETFs are experiencing unprecedented momentum. Bloomberg’s senior ETF analyst Eric Balchunas noted the funds are entering 2026 ‘like a lion.’ At the current pace, annual inflows could reach $150 billion roughly 600% more than 2025’s total.

Nearly all US funds have recorded positive inflows, with WisdomTree Bitcoin Fund being the sole exception. The strong start follows regulatory clarity under President Donald Trump’s administration, which has encouraged mainstream finance to embrace digital assets.

Korea’s Comprehensive Digital Asset Legislation

The Financial Services Commission will advance a second phase of digital asset legislation targeting stablecoins specifically. The proposed bill includes an issuer licensing system with capital requirements.

Reserve asset management rules will require issuers to maintain reserves exceeding 100% of the stablecoin issuance amount. The legislation will also establish repayment claim rights for stablecoin holders.

In connection with the stablecoin bill, Korean regulators will prepare frameworks for cross-border stablecoin transfers. The Financial Services Commission and Ministry of Finance and Economy share responsibility for these regulations.

Beyond stablecoins, Korea plans to convert one-quarter of national treasury funds to ‘deposit tokens’ by 2030. This digital currency initiative represents a significant shift in government financial infrastructure.

The government will revise the Bank of Korea Act and National Treasury Management Act based on pilot project results. Legal frameworks for blockchain-based payments and settlements are expected within 2026.

Authorities will also distribute e-wallets compatible with deposit token payments. These wallets will handle various government disbursements, including business promotion expenses.

Morgan Stanley Enters Crypto ETF Race

Major US financial institutions are deepening their crypto commitments. Morgan Stanley filed with the Securities and Exchange Commission on January 6th for Bitcoin and Solana ETFs.

Morgan Stanley has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for an Ethereum Trust. The filing follows its recent submissions for spot bitcoin and Solana ETFs. Morgan Stanley opened access to crypto investments for clients through its…

— Wu Blockchain (@WuBlockchain) January 7, 2026

The filing marks the first such move by a major US bank into direct crypto ETF issuance. Previously, banks primarily served as custodians of client crypto investments rather than active product issuers.

In December, the Office of the Comptroller of the Currency permitted banks to act as intermediaries on crypto transactions. This regulatory shift narrowed the gap between traditional finance and digital assets.

Bryan Armour, ETF analyst at Morningstar, noted Morgan Stanley’s entry into this commoditized market. He suggested the bank likely aims to migrate existing Bitcoin-holding clients into proprietary ETFs.

A bank entering the crypto ETF market adds legitimacy to it, and others could follow

Armour stated.

Many investors prefer crypto exposure through ETFs rather than direct holdings. ETFs offer greater liquidity, enhanced security, and simplified regulatory compliance compared to managing underlying assets directly.

Since the SEC approved the first US-listed spot Bitcoin ETF two years ago, numerous financial institutions have launched similar products. Asset managers have dominated issuance, but banks now seek to evolve from facilitators to active advisers.

Korea’s planned entry into the spot ETF market follows this global trend. The country joins a growing list of jurisdictions recognizing institutional demand for regulated crypto investment vehicles.

The convergence of Korean regulatory advancement and US market momentum signals broader institutional adoption. Both developments point toward cryptocurrency’s continued integration into mainstream financial systems throughout 2026.