Major South Korean Securities Firms, Investors Warming to Crypto

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South Korean investors “find it difficult to resist the lure of crypto,” and a variety of top domestic securities firms suddenly began producing reports about the sector, indicating that fund managers might be watching the markets.

An official from a major commercial bank, who requested anonymity, stated that crypto market investments were starting to rival stock markets activity. However, wealthier investors still prefer crypto to gold.

However, bankers suggested that crypto was closing this gap.

A representative from NongHyup Bank said that customers are seeking advice on investing in crypto. This has driven advisors to provide these customers with a portfolio that suits their needs.

The advisor also added:

Crypto investors return to crypto investing because they have seen high returns in a short time.

However, an advisor from a rival investment department of the bank Shinhan stated that many younger investors, who have made large crypto profits, were choosing to diversify their portfolios by investing in a variety of assets and stock markets investments.

According to the media outlet, the central Bank of Korea raised the base rate twice last year from zero to the 1% level. It also stated that it had “hinted at another rate increase” this year. Analysts expect the bank’s interest rates to rise up to three times this fiscal year. The next increase could be in the coming weeks. They believe this could result in a “correction” of share prices and possible more movement in crypto markets.

After witnessing “explosive” growth last year, many South Korean securities providers began reporting on the state crypto markets. Digital Today Hana Investment, an wing of the KEB Hana bank group, yesterday dedicated a third its monthly investment report for the first-time to crypto space.

According to the media outlet, there has been a change in the way securities providers are presenting their services. Most now have a section dedicated to crypto. These reports tend to be conservative and advise only small investments in crypto. Some claimed that crypto investments could “greatly enhance the performance” of investor portfolios.

“Heads of large securities companies” seem to have “expressed an interest in the sector by mentioning digital assets in their New Years’ addresses,” the media outlet reported. Attention was also paid to the blockchain, metaverse, and non-fungible token ( NFT). All three of the Mirae Asset Securities heads, NH Investment & Securities as well as the Shinhan Financial Investment head were quoted as mentioning how crypto and other technologies had “created new markets” and businesses.

Both media outlets pointed out that the trend is global in some way, and that similar advice was given by major financial advisors in North America and Europe about including crypto in investment portfolios.

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