South Korean Investors Actively Transition to Cryptocurrency Firm Shares

26

Retail investors in South Korea have ramped up their investments in stocks associated with digital assets, particularly , while showing a decline in interest towards shares of major American technology firms.

South Korean Investors Actively Transition to Cryptocurrency Firm Shares0

The Korea Center for International Finance (KCIF) indicated that the proportion of crypto-related company assets within the foreign stock portfolios most frequently acquired by South Korean retail investors rose from 8.5% in January to 36.5% in June, and then to 31.5% in July, as reported by Yonhap citing KCIF data.

Concurrently, shares of the seven largest American technology companies have seen a decline in popularity among retail investors in South Korea. Between January and April 2025, these stocks were purchased at an average rate of $1.68 billion per month, whereas in May, the figure dropped to $440 million, followed by $670 million in June, and just $260 million in July.

In July 2025, the most sought-after shares among South Korean investors were those of BitMine Immersion Technologies, a firm focused on staking. According to Bloomberg data, South Korean retail investors allocated $259 million to BitMine shares during that month.

Analysts at KCIF attribute the heightened interest in crypto company stocks to the enactment of the GENIUS Act in the U.S., which clarified the legal status of stablecoins, established regulatory frameworks for the industry, and permitted private companies to issue stable assets. They believe that U.S. legislative developments concerning the have enhanced confidence in the sector and increased demand for related assets.

Overall, in May 2025, South Korean investors sold more foreign stocks than they acquired for the first time in several months and continued to decrease their holdings in June. However, the trend reversed in July, with purchases surpassing sales again, amounting to $499 million. Nonetheless, this figure remains significantly lower than the average monthly purchase volume of $3.8 billion recorded from January to April.

KCIF attributes the decline in South Korean investor activity to:

  • robust growth of the South Korean stock market in comparison to foreign markets;
  • appreciation of the national currency;
  • concerns regarding the effects of U.S. tariff policies on the global economy.

In general, KCIF analysts do not anticipate a swift return of South Korean retail investors’ interest in foreign assets.

South Korean authorities are planning a comprehensive overhaul of the cryptocurrency sector in 2025, with announcements regarding the introduction of spot crypto ETFs, regulatory guidelines for stablecoins, and commission structures for crypto exchanges.

Сообщение South Korean Investors Actively Shift to Crypto Company Stocks появились сначала на CoinsPaid Media.