Korea Investment Corporation (KIC), a sovereign wealth fund, has indirectly bought shares in Coinbase. But the South Korean firm has since distanced itself from crypto-related interests.
An official from the Korean firm said they did not consider crypto assets to be a suitable form of investment for a fund of its nature. He called it an “indirect and barely significant investment” and that too in crypto exchange and not cryptocurrencies.
Established by the government in 2005, KIC was charged with enhancing the nation’s long-term purchasing power by injecting public funds in international financial markets. The American crypto exchange giant went public on the Nasdaq stock exchange in 2021. Since then, mainstream financial advisors are keeping an eye on Coinbase. Through KIC, the South Korean government now owns a chunk of the company – USD 1.9 million.
Morgan Stanley Capital is also closely following the crypto exchange. It has included Coinbase’s shares on one of its popular tracker indices. An analyst highlighted that this is so because KIC invests public funds in this tracker. As such, Coinbase shares were automatically included.
Despite this huge investment, crypto regulation remains a sore point in South Korea. The country has a soft corner for cryptocurrencies and crypto-related businesses. In South Korea’s upcoming presidential elections, two candidates have hinted that they would be taking a more crypto-friendly approach.