Retail investors in South Korea are piling into exchange-traded funds (ETFs) that track the tech-driven Metaverse, as companies behind virtual reality push the envelope of next-generation internet. The popularity of crypto exchange-traded funds in South Korea is on the rise. According to data from Samsung Asset Management, there were eight crypto-related ETFs available for investors as of Jan. 19, drawing $1 billion in inflows.
The country’s big asset management firms are rolling out investment products, tracking Bitcoin and other cryptocurrencies. The new ETFs include Samsung Asset Management’s KODEX K-Metaverse Active, KB Asset Management’s KBSTAR iSelect Metaverse, NH Amundi Asset Management’s Hanaro Fn K-Metaverse MZ, and Mirae Asset Global Investment’s Tiger Fn Metaverse. Some of the ETFs include tech companies, chipmakers and stocks associated with South Korea’s entertainment industry. Samsung’s metaverse ETF, for instance, contains shares of Hybe, which owns the music label for hugely popular K-pop group BTS, and video game makers such as Pearl Abyss.
The new funds are part of a growing trend in South Korea. In June, some crypto exchanges announced plans to launch their own crypto ETFs in the country. The move has seen a bid to attract more investors to their platforms. In addition, Naver Corp, which owns the South Korean search engine, has partnered with Kakao Corp, another South Korean internet firm, to develop software that can be used
The emerging appreciation for digital currencies in South Korea is just one example of the growing interest Asian investors have in financial instruments focusing on blockchain technology. As more ETFs come into existence, companies such as Samsung Asset Management and Huatai Securities Group announce plans to launch China’s first financial smart asset ETF. There is no slowing down or hesitation when it comes to the public’s appetite for crypto-based ETFs.
