South Korean Retail Investors Ditch Tesla for Crypto Stocks: Bloomberg Report Signals Major Shift

Seoul's trading desks are buzzing with a new obsession—retail investors are dumping Tesla shares to chase crypto stock rallies.

The Rotation Accelerates

Bloomberg data confirms a massive sector shift as traditional tech positions get liquidated for blockchain-linked equities. Trading volumes on local exchanges tell the story—crypto stocks are seeing unprecedented inflows while electric vehicle portfolios shrink.

Regulatory Whiplash

South Korea's Financial Services Commission watches from the sidelines, apparently believing that shifting from one volatile asset to another constitutes 'portfolio diversification.' Meanwhile, brokerage firms are laughing all the way to the bank with doubled commission fees.

Market Psychology at Play

When your Tesla investment bleeds 40% in six months but crypto stocks hit fresh highs weekly—the choice becomes painfully obvious. Greed beats loyalty every time in today's markets.

Capital rotation into crypto stocks

Meanwhile, capital is flowing into crypto proxies. Bitmine Immersion Technologies, often viewed as an ethereum (ETH) proxy thanks to its large ETH reserves, drew $253 million in net inflows in August alone. Combined with July’s $259 million, Bitmine has become one of the most purchased foreign stocks among Korean investors this year.

The trend extends beyond a single name. Circle and Coinbase attracted millions in Korean inflows in August, pushing total 2025 crypto-stock purchases above $12 billion. According to the Korean Center for International Finance, crypto-related equities now make up 31.4% of the top 50 net-bought foreign stocks by local retail investors, up from just 8.5% at the start of 2025.

Crypto trading surpasses stocks in South Korea

Activity in domestic markets is reflected in the equity rotation. cryptocurrency volumes surpassed local equities in late 2024, and over 10.8 million Koreans trade digital assets. Retail participation is led by investors in their 20s, who hold a higher share of crypto relative to older demographics.

Policy remains a factor. Authorities are moving toward spot crypto exchange-traded funds and new rules for exchanges, but debates continue whether digital assets should be permitted in pensions and other long-term savings.

For now, Korean retail investors are reducing exposure to Tesla and increasing allocations to blockchain-linked firms. The data shows a structural reweighting from U.S. tech equities into crypto proxies, positioning South Korea as one of the most active retail markets for digital asset exposure.