The development of the digital financial industry in Indonesia is increasingly rapid, especially with the increasing public interest in crypto-based investments. Otoritas Jasa Keuangan (OJK) is conducting an in-depth study regarding the introduction of crypto-based Exchange-Traded Fund (ETF) products as part of a more structured and regulated financial instrument. This article will discuss the prospects of crypto-based ETF.
OJK Considers Protection Aspects in Prospects of Crypto-Based ETF
Of course, this aims to assess how crypto-based ETFs can be applied in the financial ecosystem in Indonesia. In addition, OJK also considers aspects of consumer protection and their potential impact on market stability.
According to experts, the presence of crypto ETFs in Indonesia can be an entry point for people who are not yet familiar with digital assets. This instrument allows novice investors to gain exposure to the crypto market. Of course, without having to own and manage assets directly.
Opportunities for ETFs in Increasing Digital Asset Adoption
Christopher Tahir, Co-Founder of Cryptowatch and a crypto industry observer, believes that the presence of crypto-based ETFs can have a positive impact on the investment ecosystem in Indonesia.
ETFs allow people who previously did not have access or sufficient understanding of crypto to start investing. Of course in a more structured way. This instrument can also encourage wider adoption among traditional investors.
However, there are still major challenges in implementing crypto ETFs. One of them is the lack of education and socialization. In Indonesia, ETFs are not new, but their adoption is still much lower compared to stocks or crypto itself.
Increasing public understanding is the main key to ensuring the success of ETF-based crypto. Without massive socialization and proper education, people may still be hesitant to adopt this instrument even though it has many benefits.
The Role of Industry Players
In addition, several digital asset industry players in Indonesia welcome the prospects of crypto-based ETF. Toko Crypto assesses that this initiative can be a breakthrough in providing more investment options for the public.
Crypto ETFs can open wider access for various groups of investors. Both retail and institutional.
Crypto ETFs, such as Bitcoin Spot ETF or Ethereum Spot ETF, offer a new way for investors to invest in crypto. Of course without having to own the assets directly. This product allows investors to gain exposure to digital assets.
In addition to increasing accessibility, crypto ETFs can also increase the liquidity and credibility of the crypto industry in Indonesia. With clearer regulations, investors will feel safer in investing.
Real World Assets (RWA) Tokenization as an Innovation in the Financial Sector
In addition to crypto-based ETFs, another innovation that has the potential to change the digital investment landscape is Real World Assets (RWA) Tokenization. This technology allows various real assets, such as property, bonds, and commodities. The goal is to be converted into blockchain-based digital assets.
With Fractional Ownership, asset ownership can be divided into small parts. This is so that it can allow more people to invest in high-value assets.
The main advantages of RWA tokenization are increased transparency, efficiency, and accessibility. Blockchain technology ensures that every transaction is recorded permanently. Thus reducing the risk of data manipulation or fraud. In addition, by eliminating intermediaries in transactions, administrative costs can also be reduced. This will look more efficient for investors.
However, the implementation of digital asset tokenization also faces major challenges. Some risks that need to be considered include blockchain security, potential hacking, and vulnerabilities in smart contracts. Without a strong security infrastructure, investors can become targets for potentially detrimental cyber attacks.
The success of RWA tokenization is highly dependent on the support of financial institutions and clear regulations. Without the involvement of broader stakeholders, the adoption of this technology may not be able to grow optimally.
Crypto ETF Study and Regulation by OJK
OJK continues to conduct in-depth studies on the potential of crypto-based ETFs. The Chief Executive of the Financial Sector Technology Innovation Supervisory Agency, Digital Financial Assets, and Crypto Assets of OJK, emphasized that this study aims to ensure a balance between innovation and consumer protection.
This is still in its early stages and is expected to be completed in the middle of the third quarter of 2025. Regulations related to crypto ETFs themselves have not been included in the OJK Program Legislasi (Proleg) this year.
Before this regulation is drafted, OJK will invite various parties, including the crypto industry and capital market sector.
The Future of ETFs
Prospects of Crypto-Based ETF in Indonesia are expected to be a major innovation in expanding access to digital investment in Indonesia. This product offers opportunities for investors who want to enter the crypto market without having to understand the technical complexities associated with owning digital assets.
With the ongoing study, investors and industry players need to continue to follow regulatory developments to optimally utilize this opportunity. Better regulatory and educational processes will ensure that crypto ETFs can contribute to the growth of the digital asset industry in Indonesia safely and sustainably.
Challenges
Crypto-Based ETF and Real World Assets tokenization are two major innovations that have the potential to bring significant changes to the digital finance industry in Indonesia. With proper regulation and good socialization, these instruments can be a solution for investors who want to gain exposure to the crypto market and other digital assets in a safer and more regulated manner.
