South Korea’s financial research institution said in its latest report that the introduction of spot crypto exchange-traded funds will likely result in more troubles than benefits for the country’s economy.

“Allowing [such] products can lead to side effects such as increased inefficiency in resource allocation, increased exposure to crypto-related risks in the financial market, and weakened financial stability,” Korea Institute of Finance said in a Sunday report. 

The local think tank explained that crypto ETFs may lead the crypto market to intercept a large amount of cash flows for the local financial market, which could mean a lesser amount of investment for local industries. KIF added that this could make the local financial market more vulnerable to crises in the crypto sector, …