The Financial Services Commission of South Korea recently officially approved a key policy — listed companies and professional institutions can allocate up to 5% of their net assets to cryptocurrencies each year starting this year. This long-standing barrier of nine years has finally been broken down.

How significant is this policy? It directly benefits 3,500 large institutions. Their investment scope is limited to mainstream assets within the top 20 market cap on the five major exchanges. The 5% ratio may not seem large, but imagine the scale of these listed companies — combined, potential funds amounting to hundreds of trillions of Korean won. This represents a scene-level incremental opportunity.

However, it’s important to view this calmly. In the short term, it indeed provides a warm breeze for market sentiment, creating strong expectations. But the actual funds are expected to enter the market only by the end of the year. Moreover, institutions face many trading restrictions, requiring exchanges to cooperate in splitting large orders to avoid market shocks from a single large transaction.

For most traders, the key is not to follow FOMO but to understand the logic behind this move. South Korea’s step clearly signals an attitude: only top-tier assets are recognized, with a focus on liquidity. In the future, these institutional funds are likely to prioritize core assets like Ethereum and Solana. Opportunities in smaller coins are not part of this round.

This is just the beginning. South Korea also plans to launch spot digital asset ETFs and stablecoin legislation this year. The overall direction is clear — integrating cryptocurrencies into the formal financial system. A new institutional-driven phase is taking shape.

Think about which assets institutions will truly allocate to at the end of the year. The answer is clear, and your position strategy will naturally become clearer.