South Korean think tank KIF: Cryptocurrency spot ETFs do more harm than good to the country's economy

According to The Block, a South Korean financial research institution stated in its latest report that introducing cryptocurrency spot ETFs may bring more trouble than benefits to the country's economy.The Korea Institute of Finance (KIF) stated in a report last Sunday, "Allowing (such) products may cause side effects such as inefficient resource allocation, increased risks related to cryptocurrency in financial markets, and weakened financial stability."The institution explained that cryptocurrency ETFs may lead to a large amount of cash flow from the local financial market intercepted by the cryptocurrency market, leading to reduced investment in local industries. KIF added that this could make the local financial market more vulnerable to the crisis in the cryptocurrency industry, leading to increased distrust of investors in the market and regulatory agencies.