South Korean investors shift $657M from Tesla into $12B in crypto firms, signaling a bold pivot toward higher-risk digital assets.
South Korean retail investors are making big changes in their investment strategies. In August, they pulled $657 million out of Tesla stock. This was the largest sell-off by Korean investors since early 2019, according to Bloomberg. Meanwhile, they have committed $12 billion to U.S.-listed cryptocurrency firms in 2025. This movement depicts a significant change in the future direction of growth in the eyes of Korean investors.
Ethereum, Coinbase, Circle Attract Korean Investment Surge
First of all, previously, Tesla was a favorite of Korean investors. However, this trend is taking a new direction. They sold a net of 657 million worth of shares of Tesla in August alone. They also removed 554 million of a double-leveraged Tesla ETF called TSLL. It was the biggest withdrawal from the fund since early 2024. Such actions imply that investors no longer have confidence in Tesla. There are fears of increasing competition in the electric car sector and persistent problems with the self-driving software of the company.
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Korean investors, on the other hand, are highly interested in the crypto sector. They have also allocated 12 billion dollars to U.S.-based companies revolving around crypto this year, according to 10x Research. They injected $426 million into Bitmine Immersion Technologies Inc., which deals with Ethereum during August alone. They also put their money in Circle and Coinbase to the tune of 226 million and 183 million, respectively. These statistics point to an increasing confidence in the future of digital assets.
This change can be explained by a couple of reasons. To begin with, Bitcoin and Ethereum are some of the most popular cryptocurrencies in the world today. They appear risky to many investors with a high reward potential. Second, Tesla has been performing poorly as a stock. There have been delays in production and uncertainty regarding the growth of the company. Investors are having to look elsewhere because of these challenges.
Crypto Craze Grows in Korea Despite Market Risks
South Korea is also known for being open to new technology. The population is tech-savvy and is quick to adopt digital trends. That simplifies the process of crypto firms attracting attention and capital. For example, Bitmine Immersion Technologies saw net inflows of $253 million in August. A lot of this was through Korean investors who are gambling on the ascendancy of Ethereum.
However, crypto is a risky asset to invest in. Prices may increase very rapidly, but also may decrease at the same rate. Cryptocurrencies are more speculative than Tesla, which actually manufactures products. Analysts caution that investors can incur losses in case the crypto market turns on its heels.
In short, South Korean retail investors are making audacious steps. They are draining the cash out of Tesla and investing it in crypto. This year, Tesla stock has already sold at a value of $657 million, and it has also invested in crypto-related companies worth $12 billion alone. The trend is a move toward more risky investments with the opportunity of quicker returns. Although no one can be sure of what will happen tomorrow, Korean investors seem willing to take that risk in the pursuit of better returns.
