South Korean Crypto-related KOSDAQ Stocks Surge After Bitcoin ETF Approval
South Korean stocks related to the crypto industry experienced significant gains following the approval of 11 Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC).
While no South Korean crypto firm has yet been listed on the Korean Exchange, several listed companies have interests in the crypto space.
Venture capital firms that have stakes in major South Korean crypto exchanges saw substantial increases in their stock prices. For example, Woori Technology Investment saw a nearly 30% rise to a 12-month high.
Hanwha Investment & Securities also experienced a 30% increase in share prices after the news of the American ETF approval broke.
Winners and Losers Among Crypto-related Stocks
In addition to Woori Technology Investment and Hanwha Investment & Securities, other companies with investments in crypto exchanges saw their share prices rise.
T Scientific, an investor in Bithumb Korea, witnessed a more than 20% increase in its share price on the same day. Its parent company Wizit also saw a significant rise of 29.89%.
Daesung Private Equity recorded a price increase of 29.93%, while Atinum Investment had a 15.43% rise. Galaxia MoneyTree and other blockchain and fintech companies also experienced more modest gains.
Bithumb’s Plans for Expansion
Bithumb, South Korea’s largest virtual currency exchange by revenue and trading volume, has announced its plans to launch on the Korean Exchange in 2025. The recent surge in share prices may help support its expansion plans.
Last year, there were discussions about Dunamu, the operator of Upbit, following Coinbase’s footsteps and going public on the New York Stock Exchange. However, these talks have cooled down since the decline in the crypto market.
Hot Take: Crypto-related Stocks Thrive on ETF Approval
The approval of Bitcoin spot ETFs by the US SEC has had a positive impact on South Korean stocks related to the crypto industry. Venture capital firms with investments in major crypto exchanges have seen significant increases in their share prices, indicating growing investor confidence in the crypto market. This surge in stock prices may also benefit Bithumb, which plans to launch on the Korean Exchange in the future. While some companies experienced more substantial gains than others, overall, the approval of Bitcoin ETFs has revitalized South Korea’s stock market and highlighted the potential for further growth in the crypto industry.
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