Quick Highlights
- Tesla sees $657M outflow from South Korean investors in August.
- Ethereum proxy asset Bitmine Immersion draws $253M net investment.
- Tesla still leads with $21.9B in Korean retail holdings.
Tesla Sees Massive Outflows from South Korean Investors
In August, South Korean retail investors sold a net $657 million worth of Tesla shares, the largest outflow from the company since at least early 2019, Bloomberg reported.
Instead, capital is flowing into riskier assets, including Bitmine Immersion Technologies Inc., considered a proxy for Ethereum. The company received $253 million in net investments that month, the article says.
Tesla’s Outflows Reflect Changing Investor Sentiment
In the past four months, Tesla has seen $1.8 billion in outflows, signaling waning enthusiasm among one of the world’s most dedicated retail investor groups, the publication noted.
During the pandemic, South Korean traders actively bought shares of American technology giants, especially Tesla, driving up prices, according to media reports. Some investors now believe Tesla is no longer living up to expectations.
Tesla Remains Popular Despite Outflows
Despite the massive outflow, Tesla remains the most popular foreign stock among Korean retail traders, with a combined $21.9 billion in holdings, the publication reported. In comparison, Nvidia Corp. and Palantir Technologies Inc. rank second and third with significantly smaller volumes.
However, even the TSLL exchange-traded fund, which provides double leverage on Tesla shares, recorded its largest outflow since early 2024 in August – $554 million, the report noted.
The shift reflects a broader trend among South Korean investors moving capital from traditional U.S. tech stocks to higher-risk, crypto-linked assets.
Source: https://coinpaper.com/10846/south-korean-investors-pull-657-m-from-tesla-as-crypto-gains-steam
