South Korean crypto-related KOSDAQ stocks experienced a significant surge following the announcement of the US Securities and Exchange Commission (SEC)’s approval of 11 Bitcoin spot ETFs. This news sparked a wave of optimism among investors, particularly venture capital firms with stakes in major South Korean crypto exchanges. Despite the absence of any South Korean crypto firm on the Korean Exchange, listed companies with crypto-related interests witnessed a substantial increase in their stock prices.
On January 11, Woori Technology Investment, a venture capital firm, saw its share price rise by nearly 30%, reaching a 12-month high. This surge was attributed to its ownership of shares in Dunamu, the operator of South Korea’s largest virtual currency exchange, Upbit. Hanwha Investment & Securities, another major player, experienced a similar 30% day-on-day increase in its share price after the ETF news broke. Additionally, T Scientific, a crypto exchange investor, observed a share price rise of over 20% on the same day. Its parent company, Wizit, also enjoyed a substantial 29.89% increase in its share price. T Scientific owns a stake in Bithumb Korea, which is Upbit’s closest rival.
Looking ahead, Bithumb, a prominent South Korean crypto exchange, announced its intention to launch on the Korean Exchange in 2025. The surge in share prices among crypto-related firms is expected to bolster Bithumb’s prospects for a successful listing. The exchange is also actively searching for the “dormant” owners of $206 million worth of various cryptocurrencies, including Bitcoin, Ethereum, and XRP. This initiative reflects Bithumb’s commitment to account for and potentially return these funds to their rightful owners.
In addition to the aforementioned companies, other blockchain and crypto-related firms also experienced notable gains. Daesung Private Equity, for instance, recorded a significant price rise of 29.93%. The firm launched an $83 million metaverse fund in collaboration with other Daesung group companies, the Industrial Bank of Korea, and Shinhan Capital at the end of 2022. Atinum Investment, another winner, witnessed a 15.43% increase in its stock price following its Series A investment of $6.5 million into Team Blackbird, the operator of the US-based data analytics platform CryptoQuant.
Although gains in the blockchain and fintech sectors were relatively modest, companies like Galaxia MoneyTree still posted increases of over 7%. Despite initial predictions of Dunamu raising $17.9 billion through a US IPO, the realities of the crypto winter have tempered discussions on this matter.
The approval of 11 Bitcoin spot ETFs by the SEC had a profound impact on the South Korean crypto market. KOSDAQ stocks soared, benefiting venture capital firms with stakes in major South Korean crypto exchanges. As South Korea’s largest virtual currency exchange, Upbit’s operator, Dunamu, and other crypto-related companies achieved notable gains. These developments not only boost market sentiment but also potentially contribute to Bithumb’s future plans to list on the Korean Exchange.