Bitcoin kimchi premium is back on the South Korean market as the retail craze returns. BTC ETFs are being considered for adoption in South Korea.
Following a short decline to $60,000 on Wednesday, Bitcoin (BTC), the largest cryptocurrency in the world, has made a robust recovery.
The price of Bitcoin (BTC) has increased by 4% in the last 24 hours, once more surpassing $66,000.
Bitcoin (BTC) Kimchi Premium Rises 10%
Ki Young Ju, CryptoQuant CEO, disclosed in a recent statement that the premium on Bitcoin has surged to a significant 10% in South Korea, the highest level in over two years.
Ju emphasized the resurgence of Korean retail investors in the cryptocurrency market, which signifies that local traders have regained confidence and interest.
The Kimchi premium denotes the disparity in the valuation of cryptocurrency assets between exchanges based in South Korea and those located abroad.
Since the start of February, this premium has been on an ascending trend in tandem with the USD price.
Meanwhile, CryptoQuant on-chain data indicates that the Korea Premium index increased from 5.19 on February 28 to 6.84 on March 5.
Due to ongoing investments in Bitcoin ETFs in the United States, this increase coincided with Bitcoin’s March 5th milestone of surpassing $69,200, marking a new all-time high.
In contrast to the United States, South Korea does not yet have any Bitcoin ETFs in which institutional participation is substantial.
Consequently, retail spot purchases have been a significant factor in the price increases on Korean exchanges.
Amid Bitcoin’s bullish surge in December 2017, South Korean exchanges traded the cryptocurrency at prices nearly 50% higher than the majority of global exchanges.
The “significant price disparity from the global average” compelled CoinMarketCap to delist some Korean exchanges.
In a similar vein, the Kimchi premium peaked at 21.56% on May 19, 2021, coinciding with Bitcoin’s price surpassing $36,000, before returning to its previous all-time high in November 2021, during the bull run of 2021.
South Korea Seeks Approval for a Bitcoin ETF
Recognized for its highly tech-savvy population, South Korea is examining the feasibility of approving Bitcoin Spot ETFs.
According to a recent report, the governor of the Financial Supervisory Service, Lee Bok-hyun, stated in a radio interview that the legalization of Bitcoin Spot ETFs in the country is presently under discussion by authorities.
However, the classification of Bitcoin (BTC) as an underlying asset, continues to be a major concern for South Korean regulators.
The sale of spot Bitcoin ETFs by brokerages sparked inquiries under the Capital Markets Act, despite financial authorities’ January statement that they had no intention to regulate Bitcoin ETFS.
