Crypto Markets Watch South Korea as Candidate Commits to Bitcoin ETF Approval

South Korean presidential candidate Lee Jae-myung has pledged to legalize spot Bitcoin ETFs and implement crypto-friendly policies upon election.The ruling People Power Party has also proposed legalizing spot crypto ETFs, revising restrictive banking rules, and introducing a stablecoin framework.The US Bitcoin ETFs have skyrocketed since mid-April by once again attracting institutional interest worldwide. Interestingly, the South Korean presidential candidates are now using them as an election tool in order to lure voters during the upcoming election, as mentioned in our previous story.Lee Jae-myung, the leader of South Korea’s Democratic Party leader, has assured his voters the approval for spot Bitcoin ETF and other crypto ETFs, if elected to power. In addition, the leader has also vowed to bring other crypto-friendly policies.“I will create a safe investment environment so that young people can [build]assets and plan for the future,” said Lee Jae-myung, as reported by the Korea Economic Daily (KED).Lee pledged to legalize spot crypto ETFs, reduce transaction fees, and implement stronger consumer protection measures. As per the internal survey, Lee’s Democratic Party of Korea leads the presidential race with 42% support, while acting President Han Duck-soo trails at 13%. Besides, it is also the first time Lee has incorporated cryptocurrency into his presidential campaign platform.South Korea’s ruling People Power Party also announced crypto policy proposals in late April, including the legalization of spot crypto ETFs, the removal of the contentious one-exchange-one-bank rule, and the creation of a regulatory framework for stablecoins.Moreover, as highlighted in our previous report, South Korea has also been extending access to crypto investments to nonprofits, exchanges, and others.Bitcoin ETF Demand Picks Up Again With Key MilestonesInflows into spot Bitcoin ETFs have shot up significantly since mid-April with BlackRock iShares Bitcoin Trust (IBIT) leading the pack with 16 consecutive days of inflows. As the market anticipates the upcoming FOMC decision, Bitcoin’s resilience is bolstered by strong ETF inflows. Since April 16, a remarkable $5.13 billion has poured into Bitcoin ETFs, providing significant support and fueling market optimism, reported blockchain analytics firm Santiment.Source: SantimentFollowing Donald Trump’s resuming office at the White House earlier this year, crypto ETFs have been in huge demand as asset managers have been rushing to file for multiple ETFs. VanEck has recently been pushing for the BNB ETF, while the crypto community is also pinning high hopes on the Dogecoin ETF and regulatory approval.However, market analysts believe that the U.S. Securities and Exchange Commission (SEC) will do further assessment before approving crypto ETFs, which are likely to arrive by the year-end.