[Alpha Biz= Ellie Kim] Investor funds parked at South Korea’s leading crypto exchanges—including Dunamu (Upbit) and Bithumb—declined sharply in the first quarter, as capital rotated into the booming domestic equity market.

According to regulatory filings on May 19, combined user deposits at Upbit and Bithumb stood at KRW 6.95 trillion at end-March, down KRW 870.5 billion from KRW 7.82 trillion at the end of the previous quarter.

The outflow reflects weakening demand in the crypto market amid a strong rally in South Korean equities. The benchmark KOSPI index has surged to record levels this year, surpassing the 8,000 mark for the first time, drawing investor attention away from digital assets.

Upbit’s user deposits fell 11% quarter-on-quarter to KRW 5.15 trillion, while Bithumb’s declined 11.5% to KRW 1.80 trillion. Together, the two exchanges account for the vast majority of the domestic market.

User deposits—similar to investor cash balances in stock brokerage accounts—are considered a key indicator of idle capital waiting to be deployed. Their decline suggests that liquidity is leaving the crypto market.

Meanwhile, funds flowing into the stock market have surged. According to the Korea Financial Investment Association, investor deposits at domestic brokerages rose from KRW 87 trillion at the end of last year to KRW 124 trillion by end-April.

While expectations for U.S. regulatory clarity—including progress on legislation such as the “Clarity Act”—have provided some support to crypto markets, price momentum has remained limited.

Bitcoin briefly climbed above $81,000 following progress on the bill in the U.S. Senate but later retreated to around $76,969 amid profit-taking. Additionally, nearly $1 billion in net outflows was recorded from U.S.-listed spot Bitcoin ETFs over a five-day period, highlighting continued volatility and cautious investor sentiment in the digital asset space.

 

 

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