South Korean retail investors are swapping their Tesla shares for crypto-related stocks. This shift highlights a growing preference for digital assets over traditional tech giants.
Tesla’s Losing Streak
Tesla’s popularity among South Korean investors has plummeted. Bloomberg reports a massive $1.8 billion sell-off over the last four months. August alone saw $657 million in outflows – the highest since 2019. One investor explained that Tesla hasn’t lived up to expectations, particularly regarding its AI initiatives.
Crypto’s Rising Star
Meanwhile, crypto-related stocks are booming. Investors are piling into companies like Bitmine Immersion Technologies Inc., viewed as a proxy for Ethereum. In July, South Koreans invested a whopping $259 million in Bitmine, making it the most popular foreign stock. August saw another $253 million poured into the company.
The Crypto Craze
The shift towards crypto stocks is significant. Crypto-linked equities jumped from 8.5% to 36.5% of the top 50 net-bought stocks by June, before slightly dropping in July. Overall, South Koreans have invested over $12 billion in crypto stocks in 2025, with Bitmine, Circle Internet Group, and Coinbase being top choices. Last month alone saw hundreds of millions invested in these companies. This marks a huge change from previous years when US tech giants were the preferred investment.
Regulation and Uncertainty
This crypto boom is partly fueled by the push for digital asset regulation and the growing interest in won-pegged stablecoins. While the South Korean government is working on related legislation, there’s concern about a potential disconnect between regulators and the industry. Recent statements by the nominee for Financial Services Commission Chairman suggest a cautious, potentially restrictive approach to crypto investments, raising concerns among industry players.
