South Korean Investors Shift $657M from Tesla to Crypto Assets

South Korean retail investors liquidated a net $657 million in Tesla shares during August—the largest divestment since early 2023—as capital migrated toward cryptocurrency markets. The sell-off aligns with waning retail enthusiasm for Tesla globally, while crypto-linked investments like Bitmine Immersion Technologies attracted $253 million in net inflows over the same period.

Leveraged Tesla ETFs mirrored the trend, with the double-beta TSLL fund shedding $554 million in its worst monthly outflow since January 2024. Despite the rotation, Tesla remains Korean investors' largest foreign equity holding at $21.9 billion, followed by Nvidia and Palantir. Net purchases of Big Tech stocks like Apple and Alphabet collapsed from $1.68 billion monthly averages in January to just $260 million by July.

The pivot reflects a broader recalibration of risk appetites. Crypto-related equities now constitute 31.5% of Korean foreign portfolios—a dramatic surge from 8.5% at the start of 2025. Market observers note this marks a decisive break from the previous dominance of US tech giants in Korean retail portfolios.