South Korean investors exchange Big Tech for crypto shares

South Korean private investors have substantially reduced their interest in American Big Tech shares in July and are increasingly focusing on risky, but potentially lucrative, crypto-related shares.

According to data from the Korean Center for International Finance (KCIF), the share of crypto-related shares in the top 50 most net purchased foreign shares through South Koreans from 8.5 percent in January to 36.5 percent increased in June. In July this fell slightly to 31.5 percent.

The shift was at the expense of American Big Tech shares. Net purchases in this category fell to 260 million dollars in July, a decrease of 84 percent compared to the average of 1.68 billion dollars per month in the January-April period period.

Bitmine biggest winner

The biggest winner of this trend is Bitmine Immersion Technologies, a company that owns large quantities of Ether. According to the Korea Securities Depository, South Korean investors has been investing 259 million dollars in the share since the beginning of July, making it the most purchased foreign share in July.

In the last 30 days, Bitmine has increased its Ether stock by 410.68 percent to 833,100 ETH, the largest in the world. With the recent increase in the Ether price to over $ 4,300, that stock is now worth nearly $ 3.6 billion, 24 percent more than a week earlier.

Warning from Vitalik Buterin

Ethereum co-founder Vitalik Buterin supports the idea that listed companies add Ether to their balance, but warns of excessive leverage. In a podcast interview, he said that a sharp price fall in combination with a lot of debt financing can lead to a chain reaction of liquidations.

Buterin, however, emphasized that he has faith in the discipline of Ether investors and expects that they will avoid such risks.

With the current capital flow towards crypto shares, South Korea seems to be developing a clear preference for companies that benefit from the growing adoption of digital assets.