Major South Korean Securities Firms, Investors Warming to Crypto
South Korean investors are “finding it hard to resist the allure of crypto,” while a number of leading domestic securities firms have suddenly started producing reports on the sector – indicating that fund managers may be casting an eye on the markets.
According to Newspim, an official at a leading commercial bank who asked to remain nameless stated that crypto market investment was starting to rival stock market activity – although wealthier investors still prefer gold to crypto.
Bankers hinted that crypto was closing the gap, however.
An advisor at NongHyup Bank’s NH All100 investment arm said that “the number of consultations from customers who want to invest [in crypto] is “increasing,” driving advisors to “providing these customers with a portfolio that meets their needs.”
The advisor added:
“Crypto investors often return to crypto investment because they have experienced high returns in a short period of time.”
An advisor at a rival investment division of the bank Shinhan, however, stated that many younger investors who had made healthy crypto profits were instead choosing to diversify their portfolios with a range of asset classes and stock market investments.
The media outlet noted that the central Bank of Korea had raised the base interest rate twice from zero last year to the 1% level – and that it had “hinted at the possibility of another rate hike” this year. Market analysts say that they expect the bank to raise interest rates up to three times this year, with the next rise possibly coming in the next few weeks. This, they say, could lead to an “adjustment” in share prices – and possibly more movement in the crypto markets as a result.
Per Digital Today, a large number of South Korean securities providers have begun
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