Recent data shows South Korean retail investors are beginning to invest in crypto stocks while reducing their participation in major U.S. tech stocks.
Shift in Investor Interests
According to a Yonhap agency report based on data from the Korean Center for International Finance (KCIF), the share of crypto stocks among the 50 most purchased stocks by South Korean investors rose significantly from 8.5% in January to 36.5% in June, although it slightly decreased to 31.5% in July. Simultaneously, net purchases of U.S. Big Tech stocks fell to $260 million in July, down 84% from a monthly average of $1.68 billion between January and April.
BitMine's Success Among South Koreans
BitMine Immersion Technologies has become the main beneficiary of the shift in South Korean investor interests. A Bloomberg report citing data from the Korea Securities Depository indicates that since the beginning of July, South Koreans poured $259 million into BitMine stocks, making it the most purchased foreign security stock in the country in July. Over the last month, BitMine has increased its ETH holdings by 410.68% to 833,100 ETH, making the company the holder of the world's largest Ether stack, valued at nearly $3.6 billion.
Vitalik Buterin's Warnings
Ethereum co-founder Vitalik Buterin expressed support for public companies buying ETH but warned investors against excessive leverage. In a Bankless podcast, he noted that the 'downfall of ETH' could occur if it leads to an 'overleveraged game'. He emphasized that a drop in ETH price could trigger a cascade of liquidations, though he expressed confidence that ETH investors are disciplined enough to avoid such a scenario.
The shift in interests of South Korean investors towards crypto stocks and BitMine's success highlight changing trends in financial markets. At the same time, Buterin's warnings serve as a reminder of the risks associated with excessive leverage.
