Korean retail investors have reached high-risk, sophisticated crypto stocks from large US high-tech stocks.
A report from Yonhap News Agency, citing data from the Korea International Finance Centre (KCIF), said the percentage of top 50 crypto chain stocks by South Korean investors would fall to 31.5% in July after rising from 8.5% in January to 36.5% in June.
The report added that net purchases of top US tech companies fell to $260 million in July, down 84% from the monthly average of $1.68 billion between January and April.
KCIF said the recent US genius law contributed to the change in the shift towards a rapid acceptance of stables in global financial markets.
Bitmine has won $259 million from Korean traders since July
Ether Stacking Company Bitmine Immersion Technologies was the biggest beneficiary of changes in appetite for Korean investors.
On Monday, a Bloomberg report citing data from South Korean securities depository said South Korean retail investors had poured $259 million into Bitmine stock since the beginning of July. This made the company the most purchased overseas security stock in the country in July.
Over the past 30 days, Bitmine has increased its ETH Holdings by 410.68% to 833,100 ETH. It currently holds the world's largest ether (ETH) stack. The company's holdings are worth nearly $3.6 billion, up 24% from its value on Tuesday, as ETH exceeded $4,300 on Monday.
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Ethereum co-founder Vitalik Buterin supports finance companies and warns of over-leverage
Ethereum co-founder Vitalik Buterin has supported public companies purchasing ETH, but has warned investors that ETH's future should not be at the expense of excessive leverage.
On the Bankless Podcast, Buterin said it could come when “ETH downfall” turns into a “over-leveraged game.” Buterin outlines the worst-case chain reaction where ETH prices could fall, and could turn into a cascade of liquidation.
Nevertheless, he expressed confidence that ETH investors are well-disciplined to avoid such cases.
https://www.youtube.com/watch?v=bwzodbdbiuw
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