Ethereum ETFs have shifted to net outflows, dampening market sentiment. Added to this are reports of fund movements by the Lazarus Group and emerging domestic and international security regulations, which are steadily increasing market tension. While we caught a break with the news that the cross-chain protocol Across successfully negotiated with hackers to recover $3.7 million in stolen funds, the chronic security risks in the crypto ecosystem still appear to be significantly impacting institutional capital flows.

In particular, security regulations are becoming increasingly strict, with the South Korean government discussing the introduction of a 30-day payment suspension system linked to the activities of illicit groups like Lazarus. For institutions, it's inevitable that they would hesitate to enter the market due to these sudden regulatory changes and security threats, alongside macroeconomic variables. Without robust security, it seems difficult for any protocol, no matter how attractive, to be truly adopted by institutions as a safe asset. We will need to keep watching which security measures each project proposes and how the regulatory framework takes shape. 😄

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