"Banks rush in"...What is the identity of the major virtual asset transformation picked by Saylor and Cathie Wood?

▲ Virtual Assets

The virtual asset market is rapidly moving into the mainstream financial system, driven by stable income products that complement Bitcoin (BTC)'s volatility and the inflow of institutional capital.

According to a video released on May 5 (local time) on the crypto-specialized YouTube channel Paul Barron Network, Michael Saylor, Chairman of Strategy, emphasized the value of STRC, which allows investors to pursue stable returns of around 10% per year without directly holding Bitcoin. Saylor analyzed that market demand for principal stability while preserving asset value is more than 100 times greater than the market pursuing high returns. He likened STRC to a cryptocurrency reactor, explaining that a structure that generates returns while fixing principal value, rather than directly bearing volatility, could be a key driver for mass adoption.

Cathie Wood, CEO of ARK Invest, recently significantly restructured her portfolio, selectively buying technology stocks and virtual asset-related stocks. Wood used funds from selling AMD and Circle shares to focus on buying Robinhood, Netflix, Meta, and Roblox, and specifically built a new position worth $33 million in Robinhood in late April alone. This move is interpreted as anticipating the growth potential of platforms with virtual asset trading infrastructure and the benefits from the potential passage of the US Cryptocurrency Market Structure Bill (CLARITY).

The US Cryptocurrency Market Structure Bill could serve as a catalyst for virtual assets to expand beyond finance into various industries such as real life, gaming, and prediction markets. The prediction market platform Polymarket is expanding liquidity in sports and economics based on high user retention, and the digital collectible trading card game market has also entered a bullish trend, reaching an all-time high. If institutional arrangements are fully implemented, the likelihood of virtual asset-based services being incorporated as a pillar of the everyday financial system increases.

Hunter Horsley, CEO of Bitwise, described the current period as the most optimistic in virtual asset history. He diagnosed that the attitude of large financial institutions is rapidly changing, and major US banks are virtually forced to fully accelerate the adoption of virtual assets. Investment inquiries from corporate treasurers are also continuing, strengthening the outlook that global financial institutions and companies will participate in the virtual asset market in some way within the next 12 months.

The virtual asset ecosystem, including Bitcoin, is moving from a speculation-centric market to a financial infrastructure market through the inflow of institutional capital and the establishment of a legal framework. The actions of key market figures such as Saylor and Wood, the expansion of stablecoins and stable income products, Ethereum (ETH) upgrades, and investment trends in promising technology companies all indicate that a fundamental transformation of the virtual asset market is already underway.

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