Tesla Sees $657M Outflows As South Korean Retail Investors Favor Crypto-Related Stocks

South Korean retail traders have continued to favor crypto-related stocks instead of high-profile US tech firms amid growing disappointment with companies like Tesla and the global push for digital assets.

Tesla Loses Ground, Bitmine Gains Momentum

On Monday, Bloomberg reported that Tesla stock has lost ground among South Korea’s retail investors, who ramped up their selling during August in favor of crypto-related equities.

According to the report, the electric carmaker company has seen a $1.8 billion exodus over the past four months, suggesting weakening enthusiasm among one of Tesla’s most loyal global retail investor bases.

A 33-year-old retail trader told the news media outlet that the company has been unable “to win people’s hearts” as it has “failed to lead with its own AI narrative.” The investor, who first bought the stock in 2019, sold out earlier this year to focus on equities that currently have more upside.

Bloomberg calculations of depository data revealed that while the company remains the top foreign stock among South Korean retail traders, individual investors sold approximately $657 million of Tesla stock in August, recording the company’s largest outflows since 2019.

In contrast, retail traders in South Korea favored more volatile bets in August, like crypto-related stocks. During this period, investors poured $253 million into Bitmine Immersion Technologies Inc., which is seen as a proxy for Ethereum (ETH).

As reported by Bitcoinist, South Korean investors purchased $259 million worth of Bitmine stock in July, Bloomberg previously highlighted. According to Korea Securities Depository data, this made the company the most purchased foreign security stock.

Korean Investors Pour Millions Into Crypto Stocks

Data from the Korean Center for International Finance (KCIF) showed that the percentage of crypto-linked equities in the top 50 net-bought stocks by local retail investors increased from 8.5% in January to 36.5% in June before dropping to 31.4% in July.

Citing a report from 10x Research, The Korea Times highlighted that individuals have purchased over $12 billion worth of crypto-related stock in 2025, with Bitmine, Circle Internet Group, and Coinbase leading the sector.

Retail investors’ buying spree reportedly intensified last month, as traders poured $426 million into Bitmine, $226 million into Circle, and $183 million into Coinbase. This marks a shift from the leading trend over the past few years, when Korean retail investors poured into US tech giants.

“Korean investors are pouring billions into crypto stocks, reshaping global flows in ways Wall Street can no longer ignore,” the report affirms. Adding that “the push has been amplified by U.S. and Korean stablecoin legislation, creating a powerful backdrop for this surge in capital.”

Amid the global push for digital assets regulation, the institutionalization of won-pegged stablecoins gained significant attention, with President Lee Jae-myung vowing to address it alongside the status of crypto-based exchange-traded funds (ETFs) during his electoral campaign.

Since then, multiple bills related to the issuance and distribution of KRW-pegged stablecoins have been introduced in South Korea’s National Assembly. Nonetheless, the industry has expressed concerns about the disconnect between the industry and South Korean regulators.

On September 1, the nominee for Financial Services Commission (FSC) Chairman Lee Won-eun stated that digital assets “differ from traditional financial products like deposits and securities in that they lack intrinsic value.”

In his written response to the National Assembly’s Political Affairs Committee, Lee also expressed a negative stance on specific policies related to cryptocurrencies, including whether to allow investment in virtual assets through pension and retirement accounts. This raised concerns among multiple industry players that a one-sided regulatory policy may continue.