Korean Investors Shift to Crypto Stocks on Stablecoin Push

Korean retail investors have reallocated overseas equity flows from US Big Tech to crypto stocks, as stablecoin regulation gains momentum. Data from the Korean Center for International Finance shows crypto stocks rose from 8.5% of net-bought top-50 overseas equities in January to 36.5% in June and 31.4% in July, while net purchases of the top seven US tech names plunged from $1.68 billion to $260 million in July. Overseas buying rebounded to $499 million in July but remained below the $3.8 billion average between January and April. A stronger won and a robust domestic market also prompted withdrawals from foreign equities. High-risk plays like BitMine Immersion Technologies attracted $259 million in July; BitMine has boosted its Ether holdings to 1.15 million ETH (about $5 billion). The shift follows the US GENIUS Act on stablecoin rules and rival Korean bills to license stablecoin issuers and create KRW-pegged digital assets. Banks are exploring joint ventures for stablecoin issuance. Traders should watch demand for crypto stocks and ETH exposure, as regulatory clarity and rising treasury purchases by BitMine could fuel short-term momentum and support long-term market growth.