South Korea’s Election Sparks Momentum for Bitcoin ETF Approval

According to Ki Young Ju, all three South Korean presidential candidates support Bitcoin ETFs and institutional crypto investment.Political support may force regulators to approve spot Bitcoin ETFs after all the delays.The Financial Services Commission may come under pressure to revise crypto laws as election pressure builds.Ki Young Ju, the CEO of CryptoQuant, said on May 14 that all three major South Korean presidential candidates support spot Bitcoin ETFs and bigger institutional crypto investment. His message shared on X, signals a growing alignment between political leadership and crypto market demands.All three major South Korean presidential candidates support #Bitcoin ETFs and institutional investment.Currently, Bitcoin ETFs and institutional investments are banned in Korea. 100% volume comes from retail. pic.twitter.com/hL6cKci5VK— Ki Young Ju (@ki_young_ju) May 14, 2025His endorsement adds weight to ongoing discussions about regulatory change, especially as South Korea’s current laws prevent the approval of spot Bitcoin ETFs. The Financial Services Commission (FSC) has long maintained that cryptocurrencies do not have the necessary legal basis for ETF approval. On the other hand, if leading candidates agree, the process of changing these limits could go faster.Presidential Race Could Redefine Crypto PolicyKim Moon-soo of the Power Party, Lee Jae-myung of the Democratic Party, and Lee Jun-seok from the New Reform Party have openly supported spot Bitcoin ETFs. They suggest that regulated crypto products are an important part of financial innovation.Kim Moon-soo said he will add Bitcoin ETFs to his campaign plans, highlighting digital competitiveness for the future. Lee Jae-myung, Democratic Party leader, said today’s economic concerns are not about a generation’s shortcomings but are deeper structural problems. At the same time, Lee Jun-seok expressed concerns about regulations being slow, saying South Korea needs to stay strong in the global crypto scene.Despite high domestic demand for digital assets, regulatory opposition has held back their growth. Because all three frontrunners are backing ETFs, it is likely that policy will change after the election.The crypto community in South Korea has a significant influence. According to Point Daily, more than 16 million citizens own crypto trading accounts, which is more than a third of the voting populace. The combined market value of cryptocurrencies in South Korea is over 2,600 trillion won, almost equal to the overall KOSPI capitalization.Presidential candidates seem to see the increasing electoral strength of digital asset investors. Presently, campaign promises are tailored to this group’s key worries, like ETF availability, open markets, and building trust with institutions. FSC Faces Pressure to Modernize Crypto LawsThe FSC has traditionally been reluctant to accept ETF applications for physical crypto assets. Although limited approval has been granted to derivatives-based crypto ETFs, spot products are still inaccessible as the Bitcoin classification remains unclear from a legal aspect.If the new administration finds itself in tandem with the campaign promises, the FSC will have no option but to rethink its stance. Analysts believe that early steps might be legal revisions to classify cryptocurrencies as suitable underlining assets for the establishment of ETFs. That step would open doors to regulated modes of investment for both retailers and institutions.The timing also matters. The global ETF markets are rapidly growing. Spot Bitcoin ETFs were approved by U.S. regulators in 2024, and their success has set the bar globally.