South Korea crypto stocks rise as retail investors pivot from big tech

Crypto stocks rise as South Korean retail investors increasingly abandon U.S. big tech in favor of blockchain-linked equities, signaling a sharp shift in portfolio strategies and reflecting the global appetite for digital asset exposure.

According to data from the Korean Center for International Finance (KCIF), the share of crypto-linked equities in the top 50 net-bought overseas stocks by local retail investors rose sharply from 8.5% in January to 36.5% in June, before easing slightly to 31.4% in July. In the same period, net purchases of the top seven U.S. big tech stocks fell by nearly 74%, dropping from an average of $1.68 billion per month between January and April to just $260 million in July.

“Since June, the domestic stock market has outperformed overseas markets, while the local currency has strengthened, prompting individual investors to withdraw their investments from foreign markets,” — KCIF report, cited by Yonhap News Agency.

BitMine leads the crypto stock buying spree

The strongest beneficiary of this shift has been BitMine Immersion Technologies, which Bloomberg reports has attracted $259 million from South Korean retail investors since the start of July. This made BitMine the most purchased foreign security by locals during the period, according to Korea Securities Depository data.

BitMine describes itself as a Bitcoin and Ethereum Network company focused on accumulating crypto for long-term holdings. It recently became the largest Ethereum treasury in the world and the third-largest crypto treasury globally, holding over 1.15 million ETH valued at approximately $4.96 billion.

Analysts say the growing allocation to South Korean crypto stocks including companies like BitMine and other blockchain-focused firms reflects both risk appetite and a belief in the sector’s regulatory tailwinds.

“Investors are positioning for a new phase of market growth, especially with regulatory clarity emerging for stablecoins,” — Park Min-jun, equity strategist at Seoul Digital Markets Institute.

Stablecoin momentum fuels stock interest

One driver behind the rally in South Korean crypto stocks has been recent legislation supporting stablecoin regulation, particularly in the U.S. Last month, President Donald Trump signed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, creating a formal framework for stablecoin oversight and innovation.

In parallel, South Korea has advanced its own initiatives. In June, a Democratic Party of Korea lawmaker proposed a comprehensive bill to create a structured regulatory framework for crypto assets, including a licensing regime for stablecoin issuers. By July, both ruling and opposition parties had submitted competing bills aimed at regulating digital assets pegged to the Korean Won.

The country’s banking sector has already begun preparing for possible legalization, exploring whether non-bank companies will be permitted to issue stablecoins. Some financial institutions are considering a joint venture model to collectively launch KRW-pegged tokens and have initiated talks with private-sector partners.

“Stablecoins are emerging as a bridge between traditional finance and blockchain innovation,” — Lee Hye-jin, professor of finance at Korea University. “This is a catalyst for broader investment in companies tied to the crypto ecosystem, including those on overseas markets favored by Korean investors.”

Weaker foreign performance reshapes investment flows

The pivot to South Korean crypto stocks has coincided with a notable slowdown in overseas buying. KCIF data shows South Korean investors became net sellers of foreign equities in May and June before modestly returning to net buying in July, with $499 million in purchases still far below the $3.8 billion monthly average recorded between January and April.

Analysts point to a combination of factors: a stronger Korean Won, higher domestic equity performance, and perceived upside in blockchain-related equities. The appeal of South Korean crypto stocks is also amplified by the high-reward profile of companies in the sector, particularly for investors willing to tolerate volatility.

BitMine’s rapid rise as a top holding illustrates this dynamic, with retail investors seeing it as a leveraged play on both Bitcoin and Ethereum prices. This trend may extend to other blockchain-linked equities, especially if stablecoin regulation boosts market stability.

Crypto equities cement their place in portfolios

For now, the surge in South Korean crypto stocks appears to be more than a passing trend. It reflects a convergence of domestic policy support, global regulatory developments, and shifting investor sentiment away from traditional tech giants toward digital asset infrastructure.

Whether this momentum continues may depend on the trajectory of global crypto prices, the pace of legislative progress in South Korea, and how quickly stablecoins gain institutional acceptance. But for investors seeking growth beyond conventional equities, the case for South Korean crypto stocks is stronger than ever.