The End of the Bitcoin Money-Making Era, Why?

Financial institutions are focusing on the other possibilities offered by digital assets rather than judging Bitcoin's value as good or bad. Kim Jun-woo, CEO, explained that these institutions are investing with an emphasis on other, much more important aspects, refraining from commenting on major coins, despite their aggressive statements about altcoins.

Mirae Asset acquired a 97% stake in Korbit (Digital X) and conducted an additional capital increase. Kim Jun-woo, CEO, interpreted the statement "almost no one made money with Bitcoin" to mean that it is difficult to make money through Bitcoin trading, and instead, it is easier to profit through digital asset infrastructure. This is analyzed as a strategy targeting the tokenization market of existing financial assets rather than Bitcoin itself.

The mentioned 150 trillion won digital asset market refers to existing financial assets such as stocks, credit products, gold, and silver, not just cryptocurrencies. Kim Jun-woo, CEO, stated that it refers to the process of tokenizing existing assets and moving them into the digital realm. This is interpreted as a strategy by financial companies to absorb their existing customer base into digital asset exchanges.

Analysis suggests that the model of making profits through excessive lending or altcoin pumping has now ended. Kim Jun-woo, CEO, declared that the era of making money through altcoin pumping or similar coins is over, stating that while buying and selling for profit still exists, the coin market expecting such forms of profit has ended. Bitcoin is being incorporated as an asset class, and the future market is expected to be a financial asset transformation centered on RWA (Real World Asset Tokenization).

With the introduction of the RWA market, the tokenization of real-world assets such as unlisted stocks, gold, and minerals will proceed. Kim Jun-woo, CEO, predicted that the RWA real-world asset tokenization that will be seen on exchanges in the next 2-3 years will be different from existing tokens. This means that the nature of exchanges will be reorganized around tokenized financial assets.

Financial giants like Larry Fink (BlackRock) and Jamie Dimon (JPMorgan) have been condemning cryptocurrencies for 10 years, but are actually very actively pursuing digital asset businesses. Kim Jun-woo, CEO, explained that contrary to their public criticism, they are pursuing digital asset businesses and seeking to expand their influence in the tokenization market. This demonstrates that financial giants are strategically approaching the digital asset market.

Financial institutions are adopting different digital asset market entry routes and business models based on their core businesses. BlackRock is leveraging its asset management strengths to launch Bitcoin and Ethereum ETFs and create asset classes based on them. Additionally, some financial firms are seeking to secure digital asset pathways and distribution channels using traditional financial infrastructure. Kim Jun-woo, CEO, explained that Larry Fink also acknowledges existing assets and is creating ETFs and asset classes, adding that each institution has different business directions based on its core business.

Domestic financial institutions are also actively entering the digital asset market. Securities firms like Hanwha Investment & Securities are preparing RWA (Real World Asset Tokenization) platform services. Mirae Asset, which does not own a bank, is considering from a securities industry perspective whether it can also acquire the channels when more assets are issued as tokens. As such, each institution is differentiating its market entry strategy based on the priorities of its core business.

The strengths of each financial leader vary, including asset management, banking, investment, or tech platforms. Kim Jun-woo, CEO, explained that the emphasized points will differ according to these strengths. In other words, it is not a matter of a particular direction being right or wrong, but rather a simultaneous, multi-faceted innovation occurring based on each institution's position.

Deposit tokens and stablecoins play important roles in banks' digital asset strategies. Kim Jun-woo, CEO, citing JPMorgan's case, explained the difference: deposit tokens circulate within JPMorgan and can pay interest, while stablecoins can circulate externally but are legally restricted from paying interest. JPMorgan is pursuing a strategy to expand the use of deposit tokens and expand the digital asset ecosystem through linkage with stablecoins. These two will coexist in a bank's digital asset strategy, performing different roles internally and externally, respectively.

Global financial institutions are seeking to expand their ecosystems and gain market share by entering the stablecoin market. Kim Jun-woo, CEO, explained that when customer funds leave the financial system, the question is "whether we take zero market share there, or if we transfer them to a more closely linked affiliate service, for example, to get a share of that pie as well." This reflects an intention to prevent customer fund outflow and diversify revenue models through cooperation with external ecosystems.

Major financial players in the U.S. already hold banking licenses, strengthening the dominance of institutional finance. Kim Jun-woo, CEO, noted that "companies like Tether might be able to enter, but it could take more time, and they could face institutional hurdles." He expressed concern that institutional hurdles could delay the entry of existing coin issuers like Tether. This suggests that the presence or absence of a financial license acts as a significant barrier to entry into the digital asset market.

The financial sector implicitly agrees on major infrastructure coins within digital assets, excluding altcoins. Kim Jun-woo, CEO, explained that while they do not directly discuss coin prices, they are, in fact, engaged in significant business collaborations regarding the roles these coins perform. This is recognized as a crucial turning point for upgrading the financial industry, demonstrating the scaling of the digital asset market and the internalization of collaboration with existing financial systems.

The introduction of the digital asset market is expected to proceed sequentially based on the risk and expected return with which existing financial institutions categorize assets. Kim Jun-woo, CEO, stated that the market sequence would involve currency first, followed by stable products like government bonds or corporate bonds from an investment product perspective. He then predicted the introduction of credit products and funds, followed by commodities and stocks, with progressively higher risk rankings and correspondingly higher expected returns.

Real estate tokenization faces several limitations. Real estate assets have unique characteristics, making standardization and liquidity difficult. Furthermore, there are information asymmetries due to physical management issues and vacancy rates. Kim Jun-woo, CEO, pointed out that due to the inherent characteristics of real estate, every asset is different, and there isn't an active secondary market for price fluctuations, so one needs to consider how attractive it is to tokenize them. The structure where frequent transactions are difficult, even if liquidity is dispersed at the building level, acts as a hurdle.

Real estate tokenization is more complex than digital assets like stocks because it involves physical aging and management responsibilities. Kim Jun-woo, CEO, predicted that real estate tokenization "will eventually come in the form of a condo membership first." That is, an investment method where returns are sought like Airbnb through a brand-type operating model led by a management company could be a realistic starting point. This suggests that investment focused on rental income, rather than direct building ownership, would be more effective.

Announcements of corporate entry into the digital asset market should be interpreted from the perspective of speech frequency and industry differentiation. Kim Jun-woo, CEO, advised, "It's better to look at the frequency of corporate statements rather than being swayed too much by them." He added that for digital assets to be recognized as an asset class, a much wider range of perspectives is needed, and the continuous emergence of diverse corporate viewpoints and different priorities is a very good sign. This means that financial institutions' related statements should be interpreted as market bets based on individual interests and viewed as positive signals that encourage market diversity and healthy competition.

Key indicators for judging the growth of the digital asset market are regulatory clarity and real-use-driven circulation. Kim Jun-woo, CEO, emphasized the importance of understanding the regulatory timing by stating, "You need to watch the regulatory timing, like 'when will the regulations become clear?'" He also mentioned that to determine if the market is truly growing, one should look at how much real-world use continues in terms of subsequent trading and circulation turnover, rather than just issuance itself. This implies that sustained growth depends on actual service utilization.