ChainThink report: South Korea's central bank stated in its "Second-Half Financial Stability Report" that with the global advancement of "institutionalization of virtual assets," the institutionalization process via ETFs and similar vehicles has significantly strengthened the linkage between the crypto market and traditional financial markets, enabling price volatility to now be transmitted to traditional assets such as equities.

If South Korea proceeds with domestic institutionalization, it will be crucial to establish cross-market contagion and risk management mechanisms.

The report also notes that currently, the domestic South Korean crypto market remains predominantly retail-driven, with limited institutional participation and constrained financial product offerings, thus the transmission effect remains lower than that observed overseas.