Korean Retail Money Props Up Ethereum Treasuries Amid BTC Lag

Bitcoin advocate Samson Mow’s October 5 claim that South Korean retail investors have funneled approximately $6 billion into Ethereum treasury companies has ignited fresh scrutiny of ETH’s market structure. According to Mow, these investors—known locally as seohak gaemie—are being courted by ‘ETH influencers’ who have been flying to Seoul to market these firms as the ‘next MicroStrategy.’ The pitch, Mow argues, preys on financial illiteracy: ‘Many of these investors have zero idea about the ETH/BTC chart and think they’re buying the next strategy trade.’

Data from the Strategic ETH Reserve reveals the scale of this corporate accumulation trend. Sixty-seven entities, including BitMine and SharpLink, collectively hold about 5.49 million ETH—roughly $25 billion worth, representing 4.5% of Ethereum’s total supply. While these numbers appear substantial, Mow contends they mask a troubling reality: much of this exposure traces back to South Korean retail money chasing easy analogs to Bitcoin’s corporate accumulation playbook rather than demonstrating genuine institutional conviction.

The fundamental weakness in Ethereum’s position becomes starkly evident when examining its performance relative to Bitcoin. According to CoinMarketCap data from October 6, ETH had slipped approximately 1.9% in the preceding 24 hours and was down roughly 5% against Bitcoin over the past month. More concerning for Ethereum bulls is the longer-term trend: the ETH/BTC ratio has fallen by over 5% in the past year, reinforcing the perception that Ethereum’s market support is narrative-driven rather than grounded in fundamental growth or institutional adoption.

Despite periodic inflows and renewed narrative pushes, Ethereum has remained capped below its previous all-time high of $4,946. This persistent underperformance against Bitcoin, coupled with the reliance on retail-driven treasury accumulation, suggests Ethereum’s valuation may be built on shaky foundations. Mow’s critique aligns with market data showing that enthusiasm built on what he terms ‘financial illiteracy’ could backfire, especially as Ethereum continues to lag in relative performance.

The criticism of Ethereum’s treasury strategy extends beyond Mow. Mechanism Capital co-founder Andrew Kang has also cast doubt on the financial logic behind Ethereum-based treasuries, pointing to projects like Tom Lee’s BitMine as examples of ‘undisciplined treasury models’ that lack the financial structure seen in successful Bitcoin-holding firms. Kang’s assessment of Ethereum’s technical outlook is bearish, suggesting ETH’s long-term range could remain between $1,000 and $4,800 without a major change in fundamentals.

Kang concluded that Ethereum’s valuation ‘comes primarily from financial illiteracy,’ drawing comparisons to XRP’s historical rallies. While acknowledging that retail hype can sustain a large market cap for some time, he emphasized that ‘the valuation that can be derived from financial illiteracy is not infinite.’ This warning underscores the broader concern that Ethereum’s current support structure—reliant on retail enthusiasm rather than institutional adoption—may prove unsustainable as market conditions evolve.

The comparison to MicroStrategy’s Bitcoin accumulation strategy appears increasingly tenuous as Ethereum’s fundamental challenges mount. While MicroStrategy’s Bitcoin treasury has been celebrated as a disciplined corporate strategy, critics argue that Ethereum treasury companies lack similar financial rigor. The promotion of these firms as the ‘next MicroStrategy’ to South Korean retail investors represents what Mow describes as a dangerous simplification of complex market dynamics.

Whether Korean retail demand becomes a new structural pillar for Ethereum or the last gasp of a fading narrative may depend on how long the ‘ETH treasury’ story can outrun the chart. With the ETH/BTC ratio continuing its decline and experts warning about the sustainability of valuations built on retail speculation, the coming months will test whether Ethereum’s treasury strategy represents genuine institutional adoption or merely the latest manifestation of narrative-driven market behavior.