The encryption circle has suffered losses for so many years due to regulatory ambiguity, and finally迎来了一个重量级的转折点. The UK has directly nailed down the legal property status of mainstream encryption assets like ETH. How significant is this? Just look at the reactions from institutions to understand.

Why have these large funds been hesitant to enter on a large scale before? To put it simply, it's all about "compliance". For pension funds and hedge funds managing hundreds of billions in assets, investing in an asset with an "unknown identity" can lead to serious problems, risking their livelihoods. Now that the UK has made a definitive decision, it's equivalent to directly issuing a "license" to these institutions.

This is not baseless. A recent report from Sygnum Bank clearly points out two major drivers for institutional allocation of encryption assets: first, the long-term growth potential of blockchain technology, which is nearly immune to economic recession; second, from the perspective of portfolio management, encryption assets can significantly enhance diversification effects. The data speaks for itself—adding encryption assets to the investment portfolio not only increases overall returns but also reduces volatility. This is a huge temptation for risk-averse institutions like insurance funds and pension funds.

I have to speak frankly here: don't always think that regulation is here to "kill" the industry. For mainstream assets like ETH, compliance itself is the strongest trigger for a bull market. Just look at the approach in Hong Kong and you'll understand; they approved Ethereum spot ETFs long ago. What happened? The market wasn't "killed"; instead, more legitimate capital dared to enter. This is the incremental effect brought about by regulation.