S. Korean retail investors flock to US crypto-holding stocks

Investors shift from big tech to crypto-linked US stocks as Ethereum, Bitcoin surge

South Korea’s retail investors are turning away from traditional U.S. tech names like Tesla, Palantir, and Microsoft, instead chasing stocks tied to cryptocurrencies.

Three cryptocurrency-related firms ranked among the top 10 U.S. stocks most net-purchased by Korean investors over the past month, from July 16 to Aug. 15, according to data from the Korea Securities Depository (KSD).

Bitmine Immersion Technologies, a cryptocurrency mining and investment firm, led the list with $343.7 million (477.7 billion won) in net purchases. The company holds about 1.15 million Ethereum, the largest amount of any company worldwide, attracting investors hoping to benefit from Ethereum’s price rise.

Ethereum and Bitcoin /Reuters-Yonhap

SharpLink Gaming, an online casino and sports marketing company, ranked seventh with $126.3 million in net purchases, drawing attention after acquiring large amounts of Ethereum. YieldMax MSTR Option Strategy ETF (MSTY) ranked eighth with $109.6 million. MSTY is an exchange-traded fund that tracks the stock performance of MicroStrategy, one of the world’s largest Bitcoin-holding companies, while generating monthly payouts through call-option sales.

Traditional tech stocks like Tesla, Palantir, and Microsoft did not appear among the top 50. Analysts say the shift comes as Bitcoin and Ethereum surge and crypto-based ETFs remain illegal in South Korea, leading investors to U.S. stocks as an alternative.

Adding to the optimism, Standard Chartered recently raised its year-end Ethereum price forecast from $4,000 to $7,500.

Domestic holdings of U.S. stocks reached a record $137.7 billion (191.4 trillion won) as of Aug. 12, according to KSD.