While mostly going short in Korean stocks, foreign investors have recently been going after cryptocurrency-related stocks in South Korea despite the downward spiral of digital tokens with bitcoin dipping below the key psychological level of $20,000 for the first time since December 2020 last Saturday.

According to the investment industry on Monday, Vidente ranked fifth in terms of net purchases by foreign investors for five consecutive days while Hanwha Investment & Securities and Woori Technology Investment ranked sixth and 12th, respectively.

Vidente is the largest shareholder of Korean major cryptocurrency exchange Bithumb Holdings. Hanwha Investment & Securities holds a 5.26 percent stake in Dunamu, the operator of cryptocurrency exchange Upbit, and Woori Technology Investment has a 7.4 percent stake.

According to the investment bank (IB) industry, Dunamu was valued at up to 20 trillion won ($15.5 billion) in January last year when Bitcoin’s dollar value was around $50,000.

Foreign investors started cherry-picking these stocks on June 10 when bitcoin and global stock markets plummeted on news that the U.S. consumer price index recorded 8.6 percent, coming above the market estimate.

According to Investing.com, Bitcoin, which was worth $30,301 for 1 BTC on June 10, plunged to $21,041 on June 17.

Despite foreigners’ strong demand, Vidente shares fell by 17 percent, Hanwha Investment & Securities by 13 percent, and Woori Technology Investment by 13 percent during the same period due to the massive sell-offs by domestic individuals and institutional investors.

By Kang In-seon and Susan Lee

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]