According to the Korean Center for International Finance, South Korean retail investors are increasingly interested in stablecoin-related stocks, amid a decline in interest for big tech companies in the U.S.
Shift in Investments
The Korean Center for International Finance reports that South Korean retail investors are redirecting their overseas investments away from U.S. big tech stocks towards stablecoin-related shares. Statistics indicate that the proportion of virtual asset-related stocks among the top 50 net-bought overseas shares surged from 8.5% in January to 36.5% in June, with a slight drop to 31.4% in July.
Impact of the GENIUS Act
A recent report suggests that the U.S. GENIUS Act, signed by President Donald Trump in July, has been a major driver of renewed interest in stablecoin-related equities. The law has provided clear regulatory frameworks for the stablecoin industry and boosted investor confidence in companies associated with digital assets.
Market in South Korea
In July, South Korean retail investors resumed net purchasing, cumulatively investing in overseas purchases of $499 million. However, this is much lower than the monthly average of $3.8 billion experienced in the first four months of the year, indicating a cautious rebound in foreign market exposure.
Given the current trends, it is unlikely that South Korean retail investors will ramp up foreign stock purchases in the short term, but interest in stablecoin trading will likely remain strong.
