Retail investors in South Korea are pulling money from Tesla and putting billions into crypto-related companies.
- Korean investors withdrew $657M from Tesla stock in August 2025.
- They have invested over $12B into U.S. crypto firms this year.
- This shift may reshape global investment and crypto market trends.
South Koreans Reduce Tesla Holdings
In August 2025, South Korean retail investors pulled out $657 million from Tesla. This was the biggest monthly withdrawal in two years. Another $554 million left leveraged Tesla ETFs like TSLL. The sell-off signals decreased trust in Tesla’s future.
Even though they still hold $21.9 billion in Tesla shares, this move shows growing uncertainty among Korean investors. Issues like missed product deadlines, declining sales, rising EV competition from China, and Elon Musk’s unpredictable leadership influenced their decisions.
Crypto Stocks Gain Korean Interest
While pulling out of Tesla, South Koreans are investing large amounts into crypto firms. By mid-2025, they had spent over $12 billion on U.S.-listed crypto-related companies.
In August alone:
- $426 million went into Bitmine Immersion Technologies.
- $226 million into USDC issuer Circle.
- $183 million into Coinbase.
- A 2x leveraged Ether ETF attracted $282 million.
This wasn’t just speculation. It suggests a deeper shift in how South Koreans view long-term investments.
Why Crypto Appeals to South Koreans
Over 20% of South Koreans now own digital assets—rising to 27% among those aged 20 to 50. This tech-savvy group is drawn to digital finance and is more open to risk. They also seek higher returns not available in traditional investments.
South Korea has taken steps to support crypto through laws like the Virtual Asset User Protection Act, with more frameworks coming soon. Low interest rates and a weak local currency also push Koreans toward crypto assets.
Impact on Global Crypto Markets
South Korea’s investment movement is shifting global trends. Their contributions have deepened liquidity for exchanges, crypto firms, and ETFs. This helps increase trust and adoption of digital assets worldwide.
South Koreans are showing strong interest in tools like 2x leveraged Ethereum ETFs. Their approach brings more trading activity but also triggers market swings. As their role grows, fund managers globally may design products to meet their preferences.
South Korea’s pro-crypto trend is now influencing both institutional and retail investment strategies around the world.
Source: cointelegraph.com
