[Click eStock] "Bitcoin 100 Million Won Era... Rebuilding the Virtual Asset Ecosystem"

Meritz Securities analyzed on the 19th that a new virtual asset ecosystem is being established in conjunction with the dawn of the 100 million KRW era of Bitcoin.

Researcher Choi Byung-wook stated, "The recent rise in Bitcoin prices appears to be the result of the halving event combined with the launch of Bitcoin spot Exchange-Traded Funds (ETFs), leading to full-scale institutionalization and expectations for ecosystem reconstruction."

He added, "As institutions under regulatory supervision participate and a massive ecosystem is being built, we can cautiously predict that the enthusiasm in the virtual asset market will continue for some time. However, the cryptocurrency market, as we have seen, exhibits more severe volatility than any other asset, making it difficult to predict price directions."

Recently, the virtual asset market ecosystem is trending towards institutionalization. This includes companies related to digital assets and government ecosystems. It is composed of three major pillars: △custody and safekeeping, △exchanges, and △investment institutions (such as asset management firms). Market makers supplying liquidity, decentralized and P2P exchanges, and brokers also exist.

Researcher Choi noted, "It is necessary to consider in advance the stocks that will benefit from ecosystem construction and the new markets. As the scale grows, demand for new markets such as cybersecurity companies and cryptocurrency-specialized insurance products will continue to expand."

He continued, "For example, there are companies designing Bitcoin cold wallets (storage devices), so that sector will span not only finance but various industries. We plan to closely examine how the Bitcoin ecosystem develops and which industries it will impact in the future."