Are South Korean retail investors the sole force sustaining Ethereum treasury firms?

The persistent underperformance of Ethereum compared to Bitcoin has sparked renewed discussions regarding the factors behind its value and the entities driving its demand.

Samson Mow, a Bitcoin supporter, claims that approximately $6 billion in retail investments from South Korea are currently supporting so-called Ethereum treasuries. These are companies amassing ETH as a balance-sheet asset, similar to MicroStrategy’s approach to Bitcoin. Mow shared this assertion in an Oct. 5 post on X, suggesting that “ETH influencers” are flocking to Seoul to engage with retail traders seeking the next “strategy play.”

As reported by CoinMarketCap on Oct. 6, ETH has seen a decline of about 1.9% in the last 24 hours and is down nearly 5% against Bitcoin over the past month. This decline, Mow suggested, indicates that the current valuation of Ethereum is propped up by short-term retail interest rather than institutional endorsement.

Data from the Strategic ETH Reserve reveals that 67 entities, including BitMine and SharpLink, collectively hold around 5.49 million ETH (approximately $25 billion), or 4.5% of the total supply.

Mow attributed this exposure to retail investors in South Korea, known as seohak gaemie, claiming they have invested around $6 billion into Ethereum treasury firms. He suggested that promoters have marketed these companies as the “next MicroStrategy,” enticing traders looking for easy comparisons to Bitcoin’s corporate accumulation model:

“Many of these investors have zero idea about the ETH/BTC chart and think they’re buying the next strategy trade.”

He cautioned that excitement based on “financial illiteracy” could lead to negative outcomes, particularly as Ethereum continues to underperform Bitcoin.

The price trends of Ethereum reflect these concerns. Despite occasional inflows and renewed narratives, ETH remains below its previous all-time high of $4,946 and continues to decline against Bitcoin. The ETH/BTC ratio has diminished by over 5% in the past year, underscoring the view that much of the backing for Ethereum’s market cap is driven by narratives rather than fundamental growth or institutional support.

Mow’s observations align with comments from Andrew Kang, co-founder of Mechanism Capital, who has expressed skepticism about the financial rationale behind Ethereum-based treasuries. Kang highlighted initiatives like Tom Lee’s BitMine as examples of “undisciplined treasury models” that lack the financial foundations of successful Bitcoin-holding companies. “The technical outlook for Ethereum is bearish,” Kang stated, suggesting that ETH’s long-term price could fluctuate between $1,000 and $4,800 without significant changes in fundamentals.

Kang remarked that Ethereum’s valuation “ derives chiefly from financial illiteracy,” comparing its speculative trends to the past rallies of XRP. While he noted that retail enthusiasm can uphold a sizable market cap temporarily, it is not a sustainable foundation: “The valuation based on financial ignorance is not endless.”

Whether the demand from Korean retail investors becomes a stable support structure for Ethereum, or simply the fading echo of a past narrative, will depend on the ability of the “ETH treasury” story to avoid being overshadowed by market trends.

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