Korean Retail Investors and the Rise of Crypto Infrastructure Plays: Why BitMine and Circle Are Still On-Chain Bets

South Korean retail investors have long been a force of volatility in global markets, and their 2023–2025 trajectory underscores a strategic pivot toward crypto infrastructure. As traditional crypto accumulation gave way to profit-taking and leveraged speculation, these investors have increasingly funneled capital into firms like BitMine and Circle, which anchor the blockchain ecosystem. This shift is not merely a product of market conditions but a reflection of deep-seated behavioral finance mechanisms-herding, risk-seeking, and overconfidence-that define Korean retail participation.

Behavioral Finance and the Korean Retail Investor

The Korean market's retail-driven dynamics are shaped by a unique interplay of psychological and cultural factors. According to a report by the Bank of Korea, the top 10% of investors accounted for 91.2% of trading volume in 2025, a concentration that amplifies speculative trends and raises concerns about liquidity constraints and market manipulation. This behavior is emblematic of herding, where investors mimic the actions of others, particularly during periods of uncertainty. A study on Korean crypto markets found that herding behavior intensifies during downturns, as fear and social media-driven narratives override rational analysis.

Risk-seeking tendencies further compound this dynamic. Younger investors, in particular, exhibit a willingness to embrace volatile assets, often leveraging margin loans and inverse ETFs to amplify returns. By November 2025, margin loans had surged to $26 trillion, a tripling in five years, as Korean investors pursued high-yield opportunities amid low domestic interest rates. This appetite for leverage is not without consequence: behavioral biases like overconfidence-where traders underestimate risks-have led to a surge in speculative bets on leveraged products, including the 2x Ether ETF and Direxion's 3x Semiconductor ETF.

BitMine: A Case Study in Speculative Resilience

BitMine, a firm that transitioned from Bitcoin mining to Ether accumulation, has become a focal point for Korean retail investors. Despite an 82% decline in its stock price from its July 2025 peak, South Korean "ant" investors-retail traders known for their aggressive strategies-continued to pour capital into the company. By December 29, 2025, they had injected a net $1.4 billion into BitMine, with an additional $566 million flowing into a leveraged ETF tracking its performance. This behavior defies conventional market logic, highlighting the role of psychological factors such as loss aversion and the sunk cost fallacy.

BitMine's appeal lies in its position as a crypto infrastructure play. The company now holds $12 billion in Ether, positioning itself as the largest listed entity focused on token accumulation. Korean investors, drawn to its exposure to Ethereum's long-term potential, have treated it as a proxy for direct crypto ownership while circumventing regulatory hurdles. This strategy reflects a broader trend of seeking indirect access to crypto markets through equities, a shift accelerated by the BOK's warnings about the risks of direct speculative trading.

Circle and the Stablecoin Revolution

Circle, the issuer of the USDC stablecoin, has also captured the attention of Korean retail investors. In June 2025, South Korean traders allocated nearly $450 million to Circle shares, making it the most heavily purchased foreign stock that month. This surge coincided with regulatory reforms in both the U.S. and South Korea, which signaled a path toward legalizing KRW-backed stablecoins and improving market access. For Korean investors, Circle represents a bridge between traditional finance and crypto infrastructure, offering exposure to stablecoins while aligning with the global push for institutional-grade digital assets.

Circle's full-stack platform-including its blockchain infrastructure (Arc) and payment networks-has further solidified its appeal. As Korean investors increasingly view stablecoins as core financial tools, their behavior mirrors a broader shift toward treating crypto infrastructure as a long-term asset class. This trend is reinforced by the growing legitimacy of stablecoins in regulatory frameworks, which reduces perceived risks and attracts capital from risk-averse segments of the retail investor base.