As demand for digital assets develops, South Korea’s top bank is preparing to launch the country’s first digital asset investment fund. Kookmin Bank (KB) acknowledged that it is working on the fund and plans to establish it as soon as the necessary legislation is in place.
As part of its aim to enter into Bitcoin funds, KB stated that it had founded the Digital Asset Management Preparatory Committee on Monday. This committee will determine which products and strategies are best for digital asset funds. It will also examine the risk that such products pose to the bank and the compliance concerns that come with holding them.
Investors have flocked to similar items in other nations when they have flocked to such products in other countries. As a result, financial firms have been scrambling to introduce specific products in places where existing regulations allow, as more institutional investors become interested in digital assets.
Futures ETFs have grown in popularity in the United States. However, as CoinGeek has noted, the Securities and Exchange Commission (SEC) remains adamantly opposed to a spot ETF. The most recent example is Grayscale’s application to transform its BTC Trust into a spot ETF.
According to the company, KB, South Korea’s largest bank with $520 billion in assets under management, will launch the fund with an outsourced chief investment officer (OCIO), who will give guarantees on direct investments.
While this would be the first product of its kind, KB has been a long-time supporter of digital assets. For example, it collaborates with Hashed, Korea’s first bank to offer institutional digital asset custody, and has developed its Multiasset Digital Wallet, which allows customers to store digital assets and NFTs.