In a notable shift from recent investment trends, Circle and Coinbase have emerged as the top two foreign stocks in net buying by South Korean investors for June 2025. This marks the first time since September 2024 that the so-called “Magnificent 7” (M7) U.S. tech giants—Apple, NVIDIA, Microsoft, Tesla, Amazon, Alphabet, and Meta—have been entirely absent from the top two spots in monthly foreign stock purchases.
Driven by surging interest in stablecoins, individual investors in South Korea are reallocating capital toward blockchain infrastructure and digital asset platforms, signaling a maturing appetite for crypto-native financial assets.
A New Wave of Investor Interest
According to data from the Korea Securities Depository, domestic investors net purchased $505.965 million** (approximately 690 billion won) worth of **Circle Internet (CRCL)** shares as of June 26, 2025. Excluding exchange-traded funds (ETFs), **Coinbase (COIN)** ranked second with **$10.701 million (about 145 billion won) in net inflows.
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This investor momentum reflects growing confidence in the regulatory and technological foundations of stablecoins—digital currencies pegged to fiat, such as the U.S. dollar, to maintain price stability. With Circle issuing USDC, the second-largest dollar-pegged stablecoin after Tether (USDT), and Coinbase acting as a primary trading and custody platform for these assets, both companies sit at the heart of the expanding on-chain economy.
Why Circle Is Capturing Attention
Circle went public on June 5, 2025 (local time), at an offering price of $31 per share**. Since then, its stock has surged dramatically, briefly reaching over **$298.99 on June 23—nearly ten times its initial price—before closing at $213.62 on June 26.
This explosive growth follows the passage of the Genius Act in the U.S. Senate, a landmark piece of legislation aimed at establishing a clear regulatory framework for stablecoins. The bill’s approval has bolstered market sentiment around Circle’s long-term viability and compliance posture.
USDC’s market position as a regulated, transparent alternative to USDT has further strengthened investor trust. With a current market capitalization approaching 70 trillion won, Circle remains a relatively small-cap player compared to traditional tech titans—but its influence in the digital asset space is rapidly expanding.
Despite strong momentum, analysts urge caution. The average target price from three major global securities firms stands at $213.3, nearly matching its current trading level. This suggests limited near-term upside potential unless new catalysts emerge.
Coinbase: Riding the Stablecoin Surge
While not directly issuing a stablecoin, Coinbase benefits significantly from increased USDC adoption. The exchange recently entered into a revenue-sharing agreement with Circle, allowing it to earn a portion of transaction fees generated through USDC usage across various blockchain applications.
This strategic move has positioned Coinbase as a key beneficiary of broader stablecoin adoption in payments, decentralized finance (DeFi), and cross-border transactions.
Coinbase’s stock has climbed more than 50% this month alone, driven by both fundamental developments and speculative interest. Its market cap now nears 130 trillion won, making it one of the most valuable crypto-native public companies globally.
Analyst sentiment remains bullish despite current valuations. The average target price from 33 investment firms is $283.3, which may seem low given today’s price—but many institutions are revising forecasts upward. For instance:
- Oppenheimer raised its target from $293 to $395
- Bernstein increased its forecast from $310 to $510
Such adjustments reflect growing optimism about Coinbase’s ability to monetize rising crypto volumes, expand into institutional services, and benefit from favorable U.S. regulatory tailwinds.
Shifting Investor Behavior Beyond the Magnificent 7
Historically, South Korean retail investors have heavily favored U.S. tech stocks, particularly members of the M7 cohort. From November 2024 to April 2025, Tesla dominated the top spot in monthly foreign stock purchases. Even last month, while UnitedHealth Group (UNH) led the rankings, Apple still claimed second place.
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The current displacement of M7 stocks signals a diversification in investor focus. Retail traders are increasingly informed about macro-level shifts in fintech and digital currency policy, enabling them to identify early-mover opportunities outside mainstream equities.
Notably, trading activity in Circle and Coinbase has been concentrated during pre-market hours, which align with evening trading times in Korea. This pattern indicates active participation by Korean retail investors who are timing their trades based on local schedules rather than U.S. market hours.
However, their ownership stakes remain modest—around 1% for Circle and 0.5% for Coinbase—underscoring that while South Korean investors are influential in driving short-term price movements, they do not yet hold significant equity control.
Core Keywords Driving Market Interest
The surge in investor interest can be attributed to several converging themes:
- Stablecoins: Digital assets like USDC that maintain parity with fiat currencies.
- Digital asset platforms: Infrastructure providers enabling crypto trading, custody, and payments.
- Regulatory clarity: Legislative progress such as the Genius Act boosting investor confidence.
- Retail investing trends: Growing participation by individual investors in global markets.
- Blockchain innovation: Expansion of use cases in finance, payments, and decentralized applications.
- Cryptocurrency regulation: Government frameworks shaping the future of digital finance.
- US stock investing: Cross-border investment behavior among international retail investors.
- Market volatility: Short-term price swings creating speculative opportunities.
These keywords reflect both search intent and real-world dynamics influencing investment decisions.
Frequently Asked Questions
Why are South Korean investors buying Circle and Coinbase?
Rising interest in stablecoins and recent U.S. regulatory developments have made Circle (issuer of USDC) and Coinbase (a leading crypto exchange) attractive plays on the digital asset ecosystem.
Is USDC safer than other stablecoins?
Many investors view USDC as more transparent and compliant than alternatives like USDT due to regular audits and adherence to U.S. financial regulations.
Could this trend continue beyond June?
It depends on sustained price momentum and regulatory progress. Previous non-M7 leaders like Starbucks or Tempus AI lost favor once volatility decreased.
Are Korean investors influencing global prices?
While their ownership percentages are low (~1% for Circle), concentrated trading during pre-market hours can amplify short-term price movements.
What risks should investors consider?
High valuations, regulatory uncertainty outside the U.S., and potential profit-taking after rapid gains pose risks to continued upside.
How does the Genius Act impact Circle?
The law provides a federal framework for stablecoin issuance, enhancing legitimacy and potentially expanding Circle’s institutional adoption.
Looking Ahead: A Maturing Crypto Investment Landscape
While it remains uncertain whether Circle and Coinbase will maintain their top positions in coming months, their rise reflects a broader evolution in how retail investors engage with global financial innovation.
The shift away from M7 dominance suggests that investors are no longer just chasing established tech growth—but are actively seeking exposure to foundational technologies shaping the next era of finance.
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As blockchain infrastructure gains traction and regulatory clarity improves, expect continued interest in companies enabling the digital economy—from stablecoin issuers to exchanges and decentralized platforms.
For now, South Korea’s investment community has sent a clear message: the future of finance is digital, decentralized, and increasingly accessible to global retail participants.