South Korean investors abandon Tesla: now they're betting on this booming cryptocurrency

South Korean investors are withdrawing large amounts of capital from Tesla to invest in an emerging cryptocurrency with high growth potential. Find out which cryptocurrency is leading this trend and why.

According to a report by the South China Morning Post, Tesla is experiencing the largest outflow of South Korean retail capital since at least early 2023. 

In August, individual investors They settled 657 million net dollars in the electric vehicle manufacturer's shares, marking a turning point in its investment preferences. 

The narrative that once positioned Tesla as the favorite tech icon of South Korean retailers is losing steam, as a new trend clearly emerges: capital is being redirected toward digital assets, especially Ethereum (ETH). 

According to the report, while Tesla remains the top foreign stock in the country, the ongoing shift reflects a transformation in risk appetite and a reconfiguration of the innovation narratives that capture the interest of South Korean investors. Bitmine Immersion Technologies, perceived as an institutional proxy for Ethereum, is gaining prominence in the region as a new gateway to the crypto ecosystem. 

Overall, Tesla's shift marks a transition toward assets with greater narrative traction and institutional reach.

Tesla loses traction among South Korean retailers 

In August, individual investors in South Korea liquidated a net $657 million in Tesla stock, according to data cited by Bloomberg and reported by the South China Morning Post. This is the largest outflow recorded since early 2023, and marks a shift in behavior among one of the world's most active retail bases. For years, South Korean traders fueled Tesla's rallies, drawn to its narrative of technological disruption. However, that narrative is beginning to lose steam.

The growing disinterest is linked to the perception that Tesla has failed to establish a compelling narrative around artificial intelligence. 

“Tesla used to offer a lot of inspiring narratives, but it hasn't managed to win people's hearts,” "This lack of narrative leadership in AI has weakened the appeal of the company's stock, which closed August down 1,45%, trading near the $333.

According to the media, this shift is not due to a simple rotation of assets, but to a active search for new technological narrativesAlthough Tesla continues to lead foreign stocks, mentions of the company have declined on South Korean investment forums, while digital assets, especially Ethereum, are gaining prominence. 

The capital outflow also coincides with a reduction in Tesla's liquidity on Asian platforms, which has diminished its weight in retail portfolios. Now, some of this South Korean capital is migrating to assets that offer greater narrative flexibility and institutional exposure.

Ethereum leads the new risk appetite in South Korea

Ethereum has become the main beneficiary of the change in preferences among South Korean investors. Its price, which rose from $1.450 in April to a all-time high of $4.938 in August, has allowed it to consolidate its position as one of the most dynamic digital assets of the year. This rally has been accompanied by a sustained wave of institutional inflows. 

CoinShares recently reported eleven consecutive weeks of net inflows towards ETH-linked products, with a cumulative volume of $1.400 billion in the last week of August alone.

However, Ethereum's appeal isn't limited to its price performance alone. This cryptocurrency's technological narrative, centered on smart contracts, DeFi, stablecoins, and asset tokenization, has captured the interest of both retailers and institutions. 

In South Korea, Ethereum-related searches on platforms like Naver and Kakao have increased by 38% since July. Unlike previous cycles, current interest is driven by narratives of infrastructure and institutional adoption, rather than short-term speculation, and Ethereum appears increasingly linked to developments in artificial intelligence, stablecoins, and interoperability solutions, consolidating its position as a technological proxy.

Bitmine Immersion Technologies, the new institutional ETH proxy 

Bitmine Immersion Technologies has emerged as one of the most significant vehicles channeling institutional interest from South Korean investors into Ethereum. In August, the firm attracted $253 million in net inflows into this market.

To date, this company, led by Tom Lee, is positioned as the largest corporate holder of ETH globally, with more than 1,8 million ethers in his portfolio, valued at approximately 7.800 million.

Bitmine's accumulation strategy was formally launched on June 30, and in just a few weeks, it managed to raise institutional capital at a pace that has surprised even Wall Street analysts. The net asset value per share of the cryptocurrency rose from $22,84 to $39,84 between July and August, reflecting significant portfolio appreciation. Furthermore, the company is currently among the most traded stocks in the US, surpassing even giants like JPMorgan and Palo Alto Networks.

The South China Morning Post comments that Bitmine has been seen as an Ethereum "proxy", given its focus on blockchain and its treasury structure. This perception has captured the attention of South Korean investors, who see it as an interesting alternative to Tesla in their investment portfolio.

In short, this company is playing a fundamental role as a bridge between large institutional investors and the Ethereum universe, reflecting trends and dynamics that could shape the market's direction in the coming months.