Korean think tank KIF: Cryptocurrency spot ETF is more harmful than beneficial to the domestic economy

According to a recent report by a South Korean financial research institution, the introduction of cryptocurrency spot ETFs may bring more trouble to the country's economy rather than benefits. The Korea Institute of Finance (KIF) stated in a report last Sunday that "allowing (such) products may lead to side effects such as low resource allocation efficiency, increased risk associated with cryptocurrency in financial markets, and weakened financial stability." The agency explained that a crypto ETF could lead to a large amount of cash flow from the crypto market intercepting the local financial market, resulting in a decrease in investment in the local industry. KIF added that this could make the local financial market more vulnerable to the crisis in the crypto industry, leading to increased distrust of investors in the market and regulatory agencies. (The Block)