Bitcoin ETF Blocked? Smart Money Eyes KODEX Investor's Choice US TOP 25

- Annual Yield of KODEX Investor's Choice US TOP 25 Last Year: 98.6% - This ETF includes Bitcoin beneficiaries MicroStrategy and Coinbase among its holdings [Unblock Media] With domestic investors in South Korea facing difficulties in directly investing in U.S. spot Bitcoin ETFs, the 'Kodex US Seohakgaemi ETF' (Ant Investor ETF) is gaining attention as a new alternative. This ETF captures the growth potential of the cryptocurrency market by indirectly investing in Bitcoin-related companies. Its portfolio focuses on various stocks listed on the U.S. stock market that are popular among Korean investors, including Tesla, NVIDIA, and Microsoft, as well as Bitcoin-related firms like MicroStrategy and Coinbase. Notably, the 'Kodex US Seohakgaemi ETF' recorded an annual return of 98.6% last year, the highest among domestic equity ETFs. This performance was positively influenced by the surge in U.S. tech stocks and the sharp rise in Bitcoin prices, which led to a concurrent increase in the value of related companies. The investment portfolio of the 'Kodex US Seohakgaemi ETF' includes a diverse range of stocks across various sectors, from large-cap tech companies like Tesla, Apple, and NVIDIA to companies with high growth potential such as Coupang. MicroStrategy, originally a software development company, has adopted Bitcoin as a core part of its financial strategy since 2020, making large-scale Bitcoin purchases. As of September 2024, it held approximately 244,800 Bitcoins, equivalent to about $9.45 billion. This strategy has had the effect of increasing the company's value when Bitcoin prices rise. Coinbase, founded in 2012, is the largest cryptocurrency exchange in the United States, providing services such as cryptocurrency trading, custody, and payments to individual and institutional investors. As of October 2024, it had 108 million customers and total assets of $101 billion. Furthermore, in its third-quarter earnings report released on October 30, 2024, Coinbase recorded a net profit due to increased trading volume. The iShares Bitcoin Trust (IBIT), launched in January 2024 by BlackRock, the world's largest asset manager, is the first U.S. spot Bitcoin ETF, offering an innovative way to invest in the price of Bitcoin without directly holding the cryptocurrency. IBIT has shown strong performance since its inception, with a cumulative return of 113.61%, a recent 6-month return of 55.18%, and a recent 3-month return of 47.74%. IBIT, managed by BlackRock, allows investors to gain exposure to Bitcoin prices without the need to directly hold the cryptocurrency. From its listing in January 2024 to March 2025, its cumulative return reached 113.61%, significantly outperforming the returns of traditional equity ETFs or gold ETFs during the same period. This performance has been primarily driven by the rise in Bitcoin prices and the inflow of funds due to increased institutional participation in the cryptocurrency market. However, domestic investors in South Korea cannot directly invest in IBIT. This is due to complex procedures such as opening overseas stock accounts, currency exchange, and taxes, as well as the risk of exchange rate fluctuations. In this domestic situation where direct investment in Bitcoin ETFs is challenging, the 'Kodex US Seohakgaemi ETF', with its structure of indirectly investing in Bitcoin-related stocks, serves as a practical alternative. This allows investors to benefit from the upward trend of the Bitcoin market through the performance and stock price increases of related companies, without directly holding cryptocurrencies. Additionally, as a domestically listed ETF, it can be traded in Korean Won, and investment through tax-advantaged accounts (such as ISA) is also possible. Bitcoin-related companies are directly influenced by the high volatility of the cryptocurrency market. For example, MicroStrategy's financial condition could worsen due to a decrease in the value of its Bitcoin holdings if Bitcoin prices fall. To manage this, it is raising funds through the issuance of convertible bonds and continuing its Bitcoin purchasing strategy. In the case of Coinbase, its revenue fluctuates depending on cryptocurrency trading volume, so there is a risk of revenue decline during market downturns. To prepare for this, it is pursuing strategies to diversify its revenue streams, such as expanding derivatives and spot trading, and integrating its stablecoin, USD Coin. In conclusion, the 'Kodex US Seohakgaemi ETF' can be a practical and efficient alternative for domestic investors in South Korea who cannot directly invest in Bitcoin ETFs.