South Korean Investors Shift $41B From Crypto to Stocks
South Korean investors withdrew about $41.2 billion from crypto over a year, reallocating funds to domestic stocks as bitcoin trading volumes fell about 70% in early 2026.
Bank of Korea data shows the total value of virtual assets held by South Korean investors fell to $41.17 billion at the end of February 2026, down from a peak of $82.76 billion in January 2024. The decline represents a drop of roughly $41.6 billion over about 12 months.
Average daily crypto trading volume narrowed sharply during the period under review. Volume that rose to $11.62 billion in December 2024 fell to $3.06 billion by February 2025. Bitcoin trading volumes contracted further in early 2026, declining by about 70% from earlier levels.
Exchange liquidity also weakened. Won-denominated deposits held on exchanges, often used as funds for future crypto purchases, decreased from $7.27 billion in late 2024 to $5.30 billion by February 2026, according to the Bank of Korea figures.
Stablecoins were an exception to the broader fall in crypto holdings. Holdings of dollar-pegged stablecoins increased to $592.7 million in December 2024 and stood at $412.5 million in February 2026, more than double the $60.1 million recorded in July 2024. Analysts pointed to higher foreign-exchange rates as encouraging holdings of dollar-denominated assets as a hedge against won weakness.
The Bank of Korea report described the movement of funds as a rotation into “more stable, interest-bearing domestic and international stock markets,” noting lower crypto valuations and investor demand for income-generating securities.
The data were submitted to Rep. Cha Kyu-keun of the Rebuilding Korea Party on May 10. The figures provide a snapshot of shifting asset allocations among South Korean retail investors who participate actively in both crypto and stock markets.
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