The Bank of Korea (BOK) has reported that the institutionalization of virtual assets is increasingly linking them with traditional financial markets. In its latest market report, the BOK noted a growing synchronization between virtual assets and equities, driven by institutional investors and spot ETFs. This trend is leading to spillover effects, particularly during macroeconomic shocks or policy changes. In South Korea, retail investors remain predominant due to restrictions on participation and limited product offerings, which currently keep spillover effects minimal. However, the BOK cautioned that further institutionalization could expand these linkages, potentially creating new channels for financial shocks. The bank emphasized the need for robust risk management systems to ensure a smooth transition as these connections deepen.