South Korea’s Financial Services Commission (FSC) is deliberating revising its stance on spot Bitcoin ETFs (exchange-traded funds), handing over the consideration to a crypto advisory committee.

If approved, the financial instrument could position South Korea alongside a growing list of countries dealing with these investment products. It would also significantly expand the country’s digital asset investment market, as is happening in the US.

South Korea Deliberates Spot Bitcoin ETF Approvals

Local media reported that South Korea’s FSC is considering allowing spot Bitcoin ETFs and has established a virtual asset committee. The revelation came during the National Assembly State Affairs Committee audit session on Thursday.

The advisory committee will policies around evaluating digital assets and consult extensively before a possible approval. A positive decision from this virtual asset committee would see South Korea’s strict stance on investment products such as spot Bitcoin ETFs revised.

In June, the Korea Institute of Finance (KIF) expressed concerns months after the US SEC approved spot Bitcoin ETFs in the country. Specifically, the KIF highlighted significant risks associated with introducing such financial products into South Korea’s economy. Among them, it cited the potential for “increased inefficiency in resource allocation.”

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach.

It also mentioned greater financial instability associated with connecting the country’s local market to the volatile crypto sector through the spot Bitcoin ETFs. The KIF warned that such financial instruments would pull investors’ focus away from traditional industries, diverting capital and potentially slowing down South Korea’s growth and innovation.

“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,” a paragraph in the report read.

Nevertheless, the US market continues to record growing institutional interest driven by spot crypto ETFs as investors seek exposure to Bitcoin. As the allure extends to other jurisdictions like Australia and Hong Kong, among others, South Korea now finds itself at a crossroads, not wanting to lag.

Spot BTC ETFs Could Mitigate Kimchi Premium, Experts Say

CryptoQuant CEO Ki Young Ju is optimistic about the development. He says an approval would help prevent the Kimchi premium, a price gap between South Korean and overseas exchanges.

“This is bullish and will mitigate the Kimchi premium as arbitrage funds and market makers enter the Korean market,” Young Ju noted.

Other community members have also commented on the potential impact. One user on X (formerly Twitter) observes that it could open the door for institutional players, strengthening liquidity and increasing the crypto market’s potential in Korea.

Mickey Hardy, the founder of Web3 marketing and consulting studio Arcadia, said this development shows how Asian markets are leaning towards crypto, suggesting massive adoption. Rightfully so, given South Korea is also considering allowing the creation of institutional crypto accounts.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

According to the same report, the FSC established the Virtual Asset Protection Foundation in September to address similar concerns. This organization will oversee the recovery of customers’ assets from bankrupt crypto exchanges, providing relief to those affected by such exposures. Similarly, Thailand is making strides into the crypto market.

“Thailand’s Securities and Exchange Commission (SEC) has proposed new rules to allow mutual funds and private equity funds to invest in digital assets. It also wants to allow brokerages and asset managers to offer services to large investors interested in investing in cryptocurrency-related products such as ETFs,” WuBlockchain reported citing Thailand’s SEC.

Meanwhile, even as South Korea deliberates a spot Bitcoin ETF, the region’s largest exchange, Upbit, is the subject of a new investigation. As BeInCrypto reported, the country’s lawmakers are probing the monopoly structure of the virtual asset market built around the trading platform.

After a recent attempt to climb, EigenLayer (EIGEN) saw its price drop by nearly 10% in the past 24 hours, making it difficult for the token to reach $5.

However, crypto whales have stepped in with significant buying activity to prevent further declines. As the situation unfolds, investors are closely watching to see if this intervention can spark a recovery for EIGEN.

Whales Buy the EigenLayer Dip

EigenLayer, the leading Ethereum-based restaking project, launched its native token just over a week ago. Despite an initial price crash, EIGEN surged from $3.13 to $4.15 between October 6 and 10, fueling speculation of further gains.

However, the token has dropped to $3.62 in the last 24 hours, along with a 40% decline in trading volume.

From a trading perspective, increasing volume alongside rising prices typically signals strength and potential growth. But since both price and volume have decreased, this suggests the downtrend may be weakening, indicating a possible recovery for EIGEN soon.

Read more: Ethereum Restaking: What Is it and How Does it Work?

Crypto analyst Michaël van de Poppe believes EIGEN’s recent decline could be short-lived. He suggests that this dip might set the stage for a potential rally, with EIGEN possibly climbing toward $5 in the near future.

“One of the most promising projects, EIGEN, is doing well. It took the liquidity and started an uptrend, so the whole ecosystem woke up. Expecting to take liquidity at $4.25, have a slight dip (entry point), and then rally to $5+,” the analyst wrote on X. 

In line with this sentiment, on-chain data shows that crypto whales have continued to buy the token. A look at the large holders’ netflow, which shows the difference between the amount of cryptos bought and sold by large investors, revealed that it jumped by a whopping 168% in the last seven days.

This increase indicates that a higher level of accumulation is going on compared to distribution. Lookonchain also confirms this by revealing that two separate wallets bought EIGEN valued at over $6 million just yesterday. 

EIGEN Price Prediction: Support Remains Strong

EIGEN’s current price of $3.62 is close to the 38.2% Fibonacci retracement level, a key technical indicator for identifying support and resistance. The 38.2% level, located at $3.58, serves as a major support floor, suggesting a potential price rebound.

If EIGEN bounces off this level, it could rise toward the 78.6% Fibonacci retracement at $4.14.

Read more: 10 Best Altcoin Exchanges In 2024

However, the price may fall if crypto whales don’t increase their holdings. Additionally, the upcoming token unlock in October could limit upward momentum, potentially causing EIGEN to drop to $3.37, the lower 78.6% Fib level.

XRP price recently experienced an 18% decline, falling from $0.64 to $0.52. Despite the broader market correction, XRP has managed to hold above this critical support level. 

This resilience suggests that a potential bounce could be on the horizon, providing the altcoin an opportunity to recover its lost value and move back toward $0.60.

XRP Whales to the Rescue

Crypto whale addresses have been accumulating XRP aggressively at these lower price levels. Addresses holding between 10 million and 100 million XRP have collectively purchased nearly 300 million XRP, worth over $150 million, in the past three days.

This substantial buying activity by large holders reflects growing confidence in the asset’s recovery potential. Consequently, it could provide the necessary support for XRP’s price rebound.

The influx of whale activity is often a precursor to price movement, as large-scale investors accumulate when they see value. This accumulation suggests that key players in the market expect XRP to recover, and their actions could help push the price higher in the near term.

Read more: XRP ETF Explained: What It Is and How It Works

On a macro level, XRP’s Market Value to Realized Value (MVRV) ratio is currently sitting in the opportunity zone. The MVRV ratio measures investor profitability and, at -9.5%, indicates that those who bought XRP in the past month are experiencing losses. However, this range between -9% and -19% is historically seen as a buying opportunity, as investors tend to stop selling and instead accumulate assets at these low prices.

This positioning in the opportunity zone often leads to a reversal in selling pressure, encouraging accumulation, which can drive prices higher. With XRP now in this favorable zone, the macro momentum could turn positive, paving the way for a price rebound.

XRP Price Prediction: Breaching Through

The XRP price is currently holding above the 38.2% Fibonacci Retracement line at $0.52. If the altcoin successfully bounces off this support level, it could rally toward the next resistance level at $0.55, signaling a bullish move.

If XRP manages to breach $0.55, the technical indicators point to further gains. The next target would be the 61.8% Fibonacci line at $0.59. Breaching this resistance could bring XRP back to $0.60, solidifying its recovery and reversing the recent downturn.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

However, if XRP fails to break through the $0.55 resistance, it could end up consolidating between $0.52 and $0.55. This would invalidate the bullish outlook, potentially prolonging the recovery process and limiting upward momentum in the short term.