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South Korea’s Political Shift Accelerates Bitcoin ETF Approval Prospects

South Korea’s Political Shift Accelerates Bitcoin ETF Approval Prospects

Published:
2025-07-23 22:46:26
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In a significant development for the cryptocurrency market, all three major South Korean presidential candidates have expressed support for Bitcoin ETFs and institutional crypto investments, as reported by CryptoQuant CEO Ki Young Ju. This unprecedented political consensus is creating strong momentum for regulatory approval of spot Bitcoin ETFs in South Korea, potentially overcoming previous delays. With the Financial Services Commission now facing election-driven pressure to reform crypto legislation, the stage is set for a potential breakthrough in institutional crypto adoption in one of Asia's most vibrant digital asset markets. This political shift comes at a crucial time for Bitcoin's institutional acceptance globally, as South Korea's progressive stance could influence broader Asian market dynamics and potentially impact Bitcoin's price trajectory in the coming months.

South Korea’s Election Spurs Momentum for Bitcoin ETF Approval

All three major South Korean presidential candidates have thrown their weight behind Bitcoin ETFs and institutional cryptocurrency investments, according to CryptoQuant CEO Ki Young Ju. The political consensus could pressure regulators to accelerate approval of spot Bitcoin ETFs, despite previous delays.

The Financial Services Commission now faces mounting election-driven demands to revise crypto legislation. Current South Korean regulations prohibit bitcoin ETFs and institutional crypto exposure, forcing 100% of trading volume to originate from retail investors.

This unprecedented political alignment with crypto market demands signals a potential watershed moment for digital asset adoption in Asia's fourth-largest economy. Market observers note the development could unlock billions in institutional capital currently sidelined by regulatory constraints.

Bitcoin Holds Near $104K as Profit Metrics Signal Cooling Momentum

Bitcoin maintained its position NEAR $104,000 on May 14, 2025, as on-chain data revealed stabilizing—yet moderating—profitability. The realized price yield, a key metric tracking investor returns, shows declining momentum despite the asset's bullish price action.

Trading volume has tapered off, suggesting cautious market participation even as dip-buying behavior persists. A growing divergence between spot prices and profitability indicators hints at an impending consolidation phase, potentially preceding the next leg of the rally.

Historical data from April 2022 onward underscores Bitcoin's rising realized price floor, reflecting accumulating investor conviction. The market now watches for whether this stability evolves into renewed upside or a period of range-bound trading.

Susquehanna International Discloses $291M Bitcoin ETF Holdings

Susquehanna International Group has revealed a $291 million position in Bitcoin ETFs, predominantly through BlackRock's iShares Bitcoin Trust. The firm now holds $1.3 billion across spot Bitcoin ETFs—17.5 million shares—marking a strategic embrace of crypto exposure.

This allocation reflects institutional momentum following U.S. regulatory progress. Susquehanna's global trading desk already handles spot, derivatives, and structured products tied to digital assets, signaling deepening mainstream integration.

Bitcoin Whale Inflows Decline as Retail Participation Rises

Bitcoin's market dynamics are shifting as whale inflows plummet 40% from $5 billion to $3 billion since mid-April. Retail participation has grown from $12 billion to $15 billion, though remains below all-time highs.

The divergence signals changing sentiment, with institutional players turning cautious while smaller investors accumulate. Binance data reveals 56.99% of accounts now hold short positions, suggesting growing bearish speculation.

Despite the pullback from large holders, Bitcoin continues testing key resistance levels. The rising stock-to-flow ratio and sustained institutional interest provide fundamental support for the asset.

Binance Sustains 100%+ Bitcoin Reserve Ratio for 30 Consecutive Months

Binance, the world's largest cryptocurrency exchange by trading volume, has demonstrated unwavering commitment to financial transparency by maintaining a Bitcoin reserve ratio exceeding 100% for 30 straight months. The latest snapshot at Bitcoin block height 894,668 reveals 616,886 BTC held against customer net balances of 604,410 BTC—a 102% reserve ratio that sets an industry benchmark.

This proof-of-reserve initiative, launched in response to FTX's catastrophic collapse in November 2022, represents a paradigm shift in exchange accountability. Monthly attestations undergo rigorous verification by on-chain specialists and third-party auditors including Mazars, establishing Binance as a standard-bearer for custodial integrity. CryptoQuant analyst Maartun notes the significance of this sustained track record during a period when regulatory scrutiny has intensified globally.

Asia’s Wealth Shifts from USD to Crypto, Gold, and Chinese Assets Amid Geopolitical Tensions

UBS executive Amy Lo revealed at a Bloomberg Hong Kong event that Asia's billionaires are reallocating capital from U.S. dollars to Bitcoin, gold, and Chinese assets. The pivot reflects deepening concerns over geopolitical instability and volatile markets.

Asia's wealth management industry, valued at $20.7 trillion in 2024, could reach $37 trillion by 2029. UBS oversees $678 billion in regional assets, positioning its observations as a bellwether for high-net-worth investment trends.

The MOVE underscores crypto's growing role as a hedge against traditional finance risks. Bitcoin emerges as a preferred alternative store of value, alongside gold and selective Chinese investments.

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