Shinhan Investment Corp. announced on the 23rd that it has signed a memorandum of understanding (MOU) with WaveBridge and Fireblocks to develop a Bitcoin spot exchange-traded fund (ETF) and will embark on a joint research project.
A Bitcoin spot ETF is an investment product that tracks the spot price of Bitcoin, allowing investors who do not directly hold Bitcoin to trade it on exchanges like stocks. It is traded in major financial markets such as the United States, Hong Kong, and Canada. However, Korea has not yet introduced it. Our financial authorities are concerned about the potential negative impact of Bitcoin spot ETFs on financial market stability and the productivity of the real economy.
In this project, Shinhan Investment Corp. will serve as the designated participant (AP) and liquidity provider (LP) for the ETF. WaveBridge will act as a prime broker in the virtual asset market, and Fireblocks will serve as a custody technology provider for the safe storage of Bitcoin.
WaveBridge is a company specializing in virtual asset transactions and liquidity management. It operates a virtual asset brokerage platform called Dolfin for corporations and institutions. Fireblocks is a virtual asset custody company. The three companies plan to combine their expertise to establish a business architecture for Bitcoin spot ETFs suitable for the domestic capital market and design processes that integrate with the existing financial systems.
Lee Se-il, head of the blockchain scrum department at Shinhan Investment Corp., said, "Korea ranks first in East Asia in virtual asset transaction volume and has long established itself as a global market. The Bitcoin ETF will be a good opportunity for the Korean financial industry to stand out in the global financial market."