Ethereum Treasury Boom in South Korea Sparks Warnings from Industry Veterans

Nearly $6 billion in Korean retail funds are now tied up in “Ethereum treasuries”, companies accumulating ETH as part of a strategy modeled after MicroStrategy’s famous Bitcoin playbook, according to industry veteran Samson Mow.

Mow claimed that promotional campaigns and influencer-driven marketing have encouraged local investors to view these firms as “the next corporate accumulation story,” even though many lack solid financial foundations. Data from the Strategic ETH Reserve shows that roughly 67 firms collectively hold 5.49 million ETH, representing about 4.5% of Ethereum’s total supply. Major holders reportedly include BitMine and SharpLink.

ETH Price Under Pressure

Despite this accumulation trend, Ethereum’s price performance has continued to lag. Over the past 24 hours, ETH has fallen nearly 2%, and it remains down 5% against Bitcoin over the past month, according to CoinMarketCap. The token still trades well below its all-time high near $4,950, while the ETH/BTC ratio keeps sliding, a sign that capital is rotating toward Bitcoin.

Mow described current market support as “retail-driven rather than institutional,” warning that overconfidence could fuel a sharp correction.

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Analysts Question the Hype

Andrew Kang of Mechanism Capital echoed Mow’s concerns, saying most Ethereum treasury strategies lack the disciplined financial structure found in Bitcoin-focused firms like MicroStrategy. Kang characterized Ethereum’s current setup as “bearish,” suggesting ETH could remain range-bound between $1,000 and $4,800 without renewed institutional interest.

He went further, comparing Ethereum’s speculative momentum to XRP’s past hype cycles, arguing that ETH’s valuation is increasingly driven by “financial illiteracy rather than fundamentals.”

For now, Ethereum’s narrative continues to attract retail interes, particularly in Asia, but analysts caution that if Bitcoin’s outperformance persists, the so-called “ETH treasury trade” could soon shift from a bullish signal to a red flag for the broader crypto market.