South Korea’s Crypto Trading Volume Surpasses Stock Market Amid Bitcoin Rally
The recent Bitcoin rally has sparked a trading frenzy among South Korea’s crypto enthusiasts, resulting in trading volumes on local exchanges surpassing those of the stock market. According to reports from local media, trading volumes on South Korea-based crypto exchanges reached a record-breaking 11.8 trillion won (KRW) on Sunday, equivalent to $9 billion.
These figures exceeded the trading volume of the South Korean stock market on Friday, which stood at 11.47 trillion won ($8.7 billion). The combined transaction amount of Korea’s five largest won markets contributed to this milestone, with Upbit leading the pack at 8.8 trillion won, followed by Bithumb at 2.7 trillion won, Coinone at 176.4 billion won, Gopax at 55.2 billion won, and Coinone at 32 billion won.
Rising Crypto Demand Shows Increased Risk Tolerance
Observers believe that the relatively higher volume in the crypto market reflects an increased risk tolerance among South Korean investors, especially following the recent Bitcoin rally. Koreans tend to favor high-risk, high-return investments due to their experience with a rapidly growing economy.
As wealth disparity widens, more individuals are turning to alternative coins (altcoins) as their preferred choice over major assets like BTC or ETH. Despite trading at a premium compared to global exchanges, Bitcoin, Ethereum, and other tokens maintain strong retail demand on Korean exchanges.
The sustained high daily trading volume on Upbit since March supports the evidence of retail inflow into the market. Bitcoin has been commanding an average 10% price premium in South Korea compared to global exchanges, known as the Kimchi premium.
South Korea Crypto Fans Could See Spot ETF Approvals
South Korea’s chief of the financial watchdog revealed that authorities are discussing the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the country. While some hold a positive stance on virtual assets, others are more cautious.
As of now, spot Bitcoin ETFs are not available for South Korean crypto investors. Meanwhile, South Korean police continue to wage “war” on crypto-powered drug trafficking, with officers in Seoul making 452 arrests from June 2022 to December 2023.
Hot Take: South Korea’s Crypto Market Surges Amid Bitcoin Rally 🚀
The recent surge in Bitcoin’s price has ignited a trading frenzy among South Korean crypto enthusiasts, resulting in trading volumes on local exchanges surpassing those of the stock market. This trend highlights an increased risk tolerance among South Korean investors and a growing preference for alternative coins.
The potential approval of spot Bitcoin ETFs in South Korea could further boost the market and provide new investment opportunities. However, authorities hold differing opinions on virtual assets, indicating ongoing discussions and caution.
While the crypto market in South Korea continues to flourish, law enforcement is also cracking down on crypto-related illegal activities, such as drug trafficking. This demonstrates the need for regulatory measures to ensure a safe and secure crypto ecosystem.
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