Crypto traders pivot to South Korean stocks

A new trading trend has emerged for former token traders, exploring the South Korean stock market. The ability to launch contracts and trade any asset has allowed crypto traders to pivot from stagnant or crashing coins and tokens. 

Former crypto traders moved to the Korea Composite Stock Price Index (KOSPI 200), growing a newly emerging market on Hyperliquid. As of May 5, around 63% of trading positions in the index are profitable, based on Hyperliquid trading data. 

For now, the index trading is relatively niche, with just $121K in open interest. However, the trend may remain and expand, as KOSPI has broken through new records.

Why are South Korean stocks heating up?

South Korean stocks traded for years at a discount in comparison to global assets, despite the country’s development. In 2024, the government introduced the Corporate Value Up program, with the goal of bringing a new bull market. 

As a result, KOSPI is up by 31.84% in the past month, and by over 209% in the past 12 months. The index was also more volatile than Bitcoin (BTC), which was not an obstacle to crypto traders on the perpetual futures market. As KOSPI went parabolic, it was often compared to speculative tokens and altcoins.

The Value Up program has put incentives for corporations and investors with the goal of boosting flagging stock valuations. South Korea also decreased dividend tax from 45% to 13-30% in December 2025, bringing more value to local stocks.

The stock discount was not reflecting the current South Korean economy, but was a leftover effect of the corporate ownership structure. The Value Up program is seen as a shift to unlock the true price discovery of South Korean stocks.

KOSPI component stocks gain support from several strong factors, including ongoing earnings growth. The P/E ratio for KOSPI is still healthy at 26.41, comparable to Nasdaq’s ratio of 23.90 and better than the S&P 500 ratio of 30.90 points.

The index is also highly reflective of the AI boom, containing chipmakers like SK Hynix and Samsung Electronics, with a 42% weight in the index. As a result, KOSPI is one of the closest assets to a pure AI pivot. The index is also a promise of deep value, rather than bubble valuations, making a stronger case for a pivot from crypto. 

Crypto traders return to stocks

Recent Hyperliquid data shows stocks and stock indexes are back among the most actively traded assets, displacing oil futures and precious metals. The SP500 index by TradeXYZ is trading right behind BTC, ETH, and HYPE in terms of daily volumes. 

The switch to equities reflects a growing distrust of the crypto space, even for revenue-producing apps. The risk of hacks and rising uncertainty has led traders to seek other, more stable sources of growth.

The ability to represent any asset on Hyperliquid or other platforms also opens a wider selection of investments. Traders are also searching for undervalued stocks based on currently growing sectors fitting the general AI narrative.

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