Korean Retail Investors: Propping Up Ethereum's Price?
As Ethereum (ETH) continues its ascent, steadily approaching its all-time high (ATH), the cryptocurrency market finds itself in a compelling debate. Is this resurgence driven by genuine, organic demand, or is it, as some industry figures suggest, significantly bolstered by the fervent activity of Korean retail investors seeking rapid returns? This article delves into the divergent perspectives surrounding Ethereum's current valuation, exploring claims of speculative influence alongside evidence of robust underlying demand.
The Argument for Korean Retail Influence
A prominent voice in this discussion is crypto entrepreneur Samson Mow, who recently offered a critical assessment of ETH’s price trajectory. In a notable post, Mow attributed Ethereum’s heightened valuation to a substantial influx of capital from Korean retail investors. He estimated that approximately $6 billion worth of Korean retail capital is actively supporting Ethereum prices, casting a shadow of doubt on the entirely organic nature of its growth.
The "Next Strategy" Misconception and Influencer Marketing
Mow’s critique extended to the marketing practices he observed, suggesting that ETH influencers are actively engaging with retail investors in South Korea. His concern is that these investors may not possess a comprehensive understanding of the ETH/BTC chart, leading to a potentially misguided perception that they are acquiring the "next Strategy." This analogy refers to Strategy, a leading public company renowned for its significant Bitcoin (BTC) holdings, boasting over 640,031 BTC, valued at more than $48 billion. Mow cautioned that this misapprehension could ultimately lead to unfavorable outcomes for these ETH investors.
While Strategy is a titan in Bitcoin corporate treasuries, the Ethereum ecosystem also features significant institutional holders. BitMine, for instance, leads the pack among Ethereum-based treasury firms, holding more than 2.5 million ETH, valued at approximately $12.4 billion. Other notable entities with substantial Ethereum holdings include SharpLink Gaming (838,728 ETH), Coinbase (136,782 ETH), Bit Digital (120,306 ETH), and ETHZilla (102,246 ETH). The comparison highlights Mow’s concern that retail investors might be entering the market without a clear distinction between these different asset classes and their respective investment theses.
The Surging "Kimchi Premium" as an Indicator
Further supporting the hypothesis of heightened Korean retail interest is the behavior of the "Kimchi premium" in the Ethereum market. The Kimchi premium, a well-known phenomenon in cryptocurrency markets, signifies the price discrepancy where digital assets trade at higher values on South Korean exchanges compared to their global counterparts. This premium typically arises from a confluence of factors: strong localized demand, restrictions on capital outflow from Korea, and regulatory frameworks that impede seamless arbitrage opportunities between domestic and international exchanges.
On October 5th, the ETH "Kimchi premium" surged to 1.93, representing a significant increase from the -2.06 observed in July 2025, when Ethereum was trading below $3,000. Such a substantial rise in the premium often signals that the Ethereum trading market within South Korea could be approaching, or has already reached, overbought conditions, driven by a surge of local buying pressure.
Contrasting Perspectives: Robust On-Chain Data and Institutional Demand
In stark contrast to Mow's reservations, a considerable body of on-chain data suggests that both institutional and retail demand for Ethereum is not merely speculative, but continues to demonstrate robust momentum. This perspective posits that the current market strength is rooted in more fundamental factors beyond mere short-term retail speculation.
Institutional Accumulation and ETF Inflows
Evidence of sustained institutional interest is compelling. BitMine, for example, has reportedly continued its strategy of accumulating ETH, even as the cryptocurrency trades in proximity to its all-time high territory. This behavior from a significant corporate holder indicates a long-term conviction in Ethereum’s value proposition, rather than reacting to short-term price fluctuations.
Furthermore, the landscape of Ethereum-based exchange-traded funds (ETFs) has been a significant indicator of growing demand. US-based spot ETH ETFs recently attracted record inflows, totaling an impressive $547 million. Such substantial capital inflows into regulated investment vehicles underscore a broadening institutional and perhaps even mainstream retail acceptance of Ethereum as a legitimate asset class. These inflows suggest a more structured and perhaps less speculative demand component, indicating a desire for diversified exposure to the digital asset space.
Conclusion
The current state of Ethereum's market presents a complex picture, shaped by both localized retail fervor and broader institutional adoption. While Samson Mow's observations regarding Korean retail money and the "Kimchi premium" highlight potential areas of speculative overheating, the counter-arguments rooted in consistent on-chain data and record ETF inflows paint a picture of enduring and expanding demand. As Ethereum navigates these dynamics, its trajectory will undoubtedly continue to be a subject of intense scrutiny and debate within the cryptocurrency community. At press time, ETH trades at $4,701, having seen a 4.4% increase in the past 24 hours, underscoring the ongoing volatility and investor interest in this leading altcoin.
