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South Korean traders turned their Chuseok vacation into every week of aggressive risk-taking, funneling $1.24 billion into US tech and crypto-linked belongings whereas home markets had been closed between October 3 and 9.
Key Takeaways:
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South Korean traders poured $1.24 billion into US tech and crypto-linked belongings in the course of the Chuseok vacation week.
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Prime buys included Tesla, Meta, and Bitcoin mining shares, with leveraged ETFs main the surge.
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The shopping for spree ended abruptly as US–China commerce tensions triggered a worldwide market pullback.
As a substitute of taking day off in the course of the nation’s Thanksgiving break, retail traders piled into leveraged ETFs and high-growth shares, in line with information from the Korea Securities Depository.
The most well-liked goal was the Direxion Day by day Tesla Bull 2X ETF, a leveraged fund that amplifies Tesla’s inventory actions, with web purchases totaling $151 million.
Different prime buys included $105 million in Iris Vitality, an Australian Bitcoin mining agency; $100 million in Meta Platforms, and $96 million in Tesla shares themselves.
One other leveraged crypto play, the T-REX 2X Lengthy BMNR Day by day Goal ETF, which tracks Bitmine Immersion Applied sciences with double publicity, ranked fifth amongst overseas purchases at round $95 million.
The spree adopted a powerful rally in Seoul, the place the Kospi Index hit new highs earlier than the vacation amid optimism over US tech resilience and native stimulus plans.
With Korean exchanges closed, that bullish sentiment appeared to spill abroad as traders chased Wall Road’s momentum.
However timing could have labored towards them. The surge in cross-border shopping for got here simply days earlier than world markets tumbled on renewed US–China commerce tensions, erasing a part of the earlier week’s good points.
Analysts say it stays to be seen whether or not Korean retail merchants, recognized for his or her threat urge for food and agility, will keep such aggressive publicity.
The Kospi reopened 1.7% decrease on Monday, slipping again under the three,600 stage and hinting that the Chuseok rally could have been short-lived.
In August, South Korea’s monetary regulator moved to rein in dangerous lending practices within the digital asset sector, ordering native exchanges to droop all crypto lending companies till a correct regulatory framework is established.
The crackdown got here amid South Korea’s broader pivot towards regulated crypto adoption. Authorities are lifting restrictions on institutional buying and selling and getting ready to approve the nation’s first spot crypto ETFs.
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