South Korean Retail Investors Flee Tesla, Pour into Ethereum Amid Market Volatility

Korean retail traders have sold $657M in Tesla shares in August, the largest monthly outflow since early 2023, while investing $253M in BitMine Immersion Technologies, a proxy for Ethereum. This shift highlights a waning faith in Tesla's AI promises and growing appetite for riskier bets. Tesla's share price is up 17% over 6 months, but still down 12% YTD. Ethereum has outperformed Bitcoin, with ETH price surging 28% in 30 days and 69% in 60 days, while BitMine's share price has spiked 520% YTD.

South Korean retail investors have sold a net $657 million of Tesla shares in August, marking the largest monthly outflow since early 2023 [1]. This exodus coincides with a growing interest in cryptocurrencies, particularly Ethereum, as evidenced by a $253 million net inflow into BitMine Immersion Technologies, a proxy for Ether [2].

The shift in investor sentiment reflects waning enthusiasm among one of Tesla’s most loyal global retail bases, whose buying sprees once amplified the stock’s rallies. Korean traders, who have traditionally been drawn to high-profile US tech companies like Tesla, are now exploring more volatile investment options [1].

Tesla’s share price has seen a 17% increase over the past six months but remains down 12% year-to-date (YTD). The company’s struggles to meet AI and electric vehicle (EV) market expectations may be contributing to the loss of investor confidence [1].

In contrast, Ethereum has significantly outperformed Bitcoin, with its price surging 28% in the past 30 days and 69% over the last 60 days. BitMine Immersion Technologies, which holds a substantial amount of Ethereum, has seen its share price spike by 520% YTD [3].

The exodus from Tesla and the influx into Ethereum and its proxies highlight a broader trend of investors seeking higher-risk, higher-reward investments. While Tesla continues to be the top foreign stock among Korean retail traders, holding approximately $21.9 billion of the company’s stock, the data shows a clear shift in investor preferences [2].

The passage of the GENIUS Act in July, which established federal rules for stablecoins, has bolstered Ethereum’s ecosystem and contributed to its growing appeal. Additionally, Ethereum’s 3% staking yield, a feature Bitcoin lacks, further enhances its attractiveness [3].

As Tesla navigates the challenges of meeting AI and EV market expectations, investors are turning to more promising opportunities in the cryptocurrency space. The shift in investor sentiment underscores the importance of staying informed about emerging trends and risks in the financial markets.

References:
[1] https://www.scmp.com/tech/big-tech/article/3323911/tesla-sees-exodus-south-korean-retail-investors-cryptocurrencys-allure-rises
[2] https://www.bloomberg.com/news/articles/2025-09-01/tesla-sees-south-korean-retail-exodus-as-crypto-s-allure-grows
[3] https://247wallst.com/investing/2025/08/29/why-ethereums-rally-to-7500-makes-bitmine-immersion-a-must-buy-stock-now/