South Korea’s Kookmin Bank Plans To Offer Crypto ETF For Retail

South Korea’s largest bank, Kookmin Bank, has announced plans to launch crypto investment products targeted to retail investors.

According to the announcement, Kookmin Bank has formed a Digital Asset Management Committee with the aim to launch a crypto exchange-traded fund (ETF) and future products as soon as regulation in the country allows. 

Cryptocurrency exchange-traded funds (ETFs) are financial instruments that track the value of a particular asset or a collection of assets. These products allow investors to diversify their holdings without actually owning any of the tokens.

Hong-Gom Kim, head of Kookmin Bank’s index quant management division said:

“We will launch a virtual asset-themed equity fund, etc., as soon as possible. We will also publish periodicals.”

South Korean government does currently not allow local banks to offer cryptocurrency trading services directly. On the other hand, financial organizations are able to provide indirect digital asset opportunities through partnerships with exchanges.

Along with developing a fund through its proposed virtual currency index, the bank is also looking at the possibility of a hybrid fund that includes crypto alongside traditional assets. This fund will be utilized by an outsourced chief investment officer to provide guarantees on its investments. It may also be used in retirement pensions. 

The move follows other Asian legacy banking institutions moving into crypto. Last week, Singapore’s DBS Bank announced plans for a retail digital asset trading desk later this year. In January, the Philippines’ Union Bank unveiled plans to offer cryptocurrency trading and custodial services.