Korean retail investors shift $657 million from Tesla to cryptocurrency firms
Korean retail investors, known as “Seohak ants,” sold off a massive ₩916.3 billion (approximately USD 657 million) worth of Tesla shares in August and shifted their investments toward cryptocurrency-related companies. The funds were funneled primarily into U.S.-listed crypto firms such as Coinbase and Circle, a move that has also sparked growing interest in .
Coinbase is the largest cryptocurrency platform in the United States and the first virtual asset company to be listed on Nasdaq. Coins scheduled for listing on the platform attract significant attention from investors even before official trading begins, as listings often trigger a surge in trading volume and sharp price increases. The shift of Korean retail investors from Tesla to crypto firms such as Coinbase is not merely about purchaseing company shares; it also reflects a strategy aimed at seizing ahead investment opportunities in coins newly listed on the platform. Ultimately, this trend illustrates how Korean individual investors are shifting their investment paradigm from traditional stocks to digital assets.
Fading Praise for Tesla… Investor Sentiment Shifts Toward Digital Assets
According to recent data from the Korea Securities Depository, Korean retail investors—known as “Seohak ants”—were in August. This marks the largest monthly trade-off since 2019 and reflects a significant shift in sentiment among once-enthusiastic investors who had driven Tesla’s stock rally around the COVID-19 pandemic. The trade-off was not limited to Tesla shares alone; around USD 550 million also flowed out of the TSLL ETF, a leveraged platform-traded fund that tracks Tesla with 1.5x leverage, underscoring the sharp cooling of investor appetite. Bloomberg described the move as “a symbolic event showing that the momentum of the Tesla story, which had captivated global investors since the pandemic, is waning,” interpreting it as a signal that investors are viewking new directions for their portfolios.
Analysts suggest that political factors have also influenced investor sentiment. Subtle tensions between Elon Musk and former President Donald Trump have brought Tesla’s political risks into the spotlight. In particular, as Musk continues to make political statements while becoming embroiled in controversies surrounding his management of X (formerly Twitter), even the indirect association with Tesla has been cited as a source of investor anxiety. On the identical day, . A Trump-themed memecoin also dropped 12%, signaling that political uncertainty is spreading across the broader market. This environment has fragileened the “story-driven” investment trend and left even Tesla’s once-loyal investor base unsettled.
Leading Cryptocurrency Firms Demonstrate Strong Capital-Absorption Power
Interestingly, the funds exiting Tesla shares did not simply flow into other traditional tech stocks but were directed toward companies directly involved in the cryptocurrency sector. This shift is more than a simple investment trend; it reflects investors’ perception of the growth potential within the digital asset ecosystem as a new growth story. Notably, Bitmain Immersion Technologies alone saw a net inflow of approximately USD 253 million (about KRW 3.4 trillion), a development that made a significant impact on the market. This trend indicates that cryptocurrency firms are no longer viewn merely as a “highly volatile emerging industry” but are increasingly recognized as a major asset class capable of attracting global investment capital.
Bitmain holds a significant position in the cryptocurrency market. The company is notably known for holding large amounts of ETH, a factor that has become increasingly attractive to investors amid recent ETH price gains. Additionally, the fact that Peter Thiel, co-founder of PayPal, owns more than a 9% stake in the company serves as a key element enhancing market confidence. Global investors tend to place weight on the long-term growth potential of companies when high-profile Silicon Valley figures like Thiel are involved. In the crypto industry, Bitmain’s substantial asset holdings and technological capabilities are expected to play an significant role in the future expansion of the DeFi (decentralized finance) and NFT ecosystems.
This trend reflects a structural shift in investor sentiment. The growing attention to digital assets indicates not only changing behavior among individual investors but also signals that cryptocurrency is becoming a core component of institutional portfolios. For example, Marti Technologies has strategically reallocated 20% of its cash holdings into BTC, demonstrating that companies are recognizing the potential of digital assets and actively acting on it. While innovative tech firms like Tesla were once symbolic investment choices, crypto infrastructure companies are now taking that role. Notably, the inflow of hundreds of millions of dollars in a short period highlights that cryptocurrency firms are no longer passive entities moving only with virtual asset price fluctuations; they have emerged as alternative investment destinations capable of actively attracting capital. Investment experts predict that “as uncertainty in traditional industries grows, preference for digital asset-related firms will strengthen,” suggesting that this trend is likely to continue in the medium to long term.
Implications of the Changing Investment Structure
This recent capital shift goes beyond a mere change in investment preferences; it demonstrates a fundamental transformation in the investment patterns of Korean retail investors. Vaultz Capital, for instance, recently increased its holdings by purchasing an additional 50 BTC, bringing its total to 60 BTC, signaling that cryptocurrency is gradually becoming a core asset within institutional investment portfolios. The large-scale trade-off of iconic global tech stocks like Tesla, coupled with a pivot toward shares of crypto-related companies, reflects an intent to move beyond traditional stable-growth narratives in search of higher returns and new market opportunities. In particular, the movement led by Seohak ants highlights the symbolic significance of cryptocurrency’s integration into mainstream finance and illustrates how domestic retail investors are rapidly adapting to global market trends. In other words, this phenomenon is not merely the result of specific stock sales but exemplifies how cryptocurrency is establishing itself as a next-generation growth engine in the global financial market.
Moreover, this trend could have ripple effects across global financial markets. Capital inflows into crypto-related companies are likely to drive growth for platforms and associated infrastructure firms, creating a positive feedback loop that further heightens interest in coins scheduled for listing. Coins announced for upcoming listings on global platforms like Coinbase already serve as strong market signals, and the participation of Korean investors in this trend could influence global supply and demand dynamics. For example, when a scheduled coin is officially added to an platform, ahead investors can expect substantial returns, which in turn acts as a catalyst, sparking a competitive rush among investors worldwide to gain ahead exposure.
