South Korea’s largest bank is gearing up to launch the country’s first digital asset investment fund as demand grows. Kookmin Bank (KB) has confirmed that it is working on the fund and will launch it as soon as regulations are in place to allow such products.
Monday, KB announcement that he had formed the Digital Asset Management Preparatory Committee as part of his plan to enter Bitcoin Funds. This committee will determine the most ideal product and strategy capabilities for digital asset funds. It will also assess the risk these products would pose to the bank and the compliance issues associated with owning such products.
KB plans to launch a digital asset exchange-traded fund (ETF) and futures products at a time when investors have flocked to such products in other countries. As more institutional investors dabble in digital assets, financial firms have scrambled to launch targeted products in jurisdictions where existing laws permit.
In the United States, futures ETFs have become very popular. However, as CoinGeek reported, the Securities and Exchange Commission (SEC) is still adamant against a spot ETF, the latest being Grayscale’s request to convert its BTC Trust to a spot ETF.
“We are going to launch a virtual equity fund on the theme of assets, etc. We also plan to publish periodicals,” said Honggun Kim, head of quantitative index management at the bank.
KB, which with $520 billion in assets under management is South Korea’s largest bank, will launch the fund with an outsourced investment manager (OCIO), which it says will provide guarantees on major investments. .
Although this is the first product of its kind, KB has been supporting digital assets for years now. This offers institutional custody of digital assets through a partnership with Hashed, the first bank in Korea to do so, and spear its multi-asset digital wallet, which allows users to store digital assets and NFTs.
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