A recent issue has been frequently appearing in the community: Are insurance funds really about to enter mainstream cryptocurrencies on a large scale? What does this signal mean? I have carefully studied the relevant data and trends, and today I want to share some core insights with everyone.

First, it is necessary to clarify a basic concept—the scale of insurance funds in the global financial system. Among the so-called "smart money" camp, insurance funds are definitely top-tier players. The global insurance industry's capital scale is measured in trillions of dollars; even if only one-thousandth of that capital enters the crypto market, it would be enough to have a profound impact on the market structure of mainstream coins. In comparison, the current trading volume of mainstream coins is mainly driven by short-term speculative funds, lacking long-term, stable large-capital support. Once this situation changes, market dynamics will also adjust accordingly.

The entry of insurance funds will bring about three significant changes:

**First is volatility reshaping.** Insurance funds pursue steady appreciation rather than speculative quick riches. They won't chase price increases or sell-offs like retail investors, nor will they engage in high-leverage trading. Instead, they will build positions gradually and in phases. This means that extreme fluctuations, such as a 20% daily increase or a 15% drop, will gradually decrease. Mainstream coins may enter a phase with a more balanced rhythm and milder gains—the so-called "slow bull" scenario. Of course, this also means the probability of single-day surges will decrease.

**Second is liquidity optimization.** Large-scale participation by insurance funds will significantly enhance market liquidity depth. Currently, even slightly larger buy or sell orders often cause slippage, which is unacceptable for professional institutions. The addition of insurance funds will enable the market to accommodate larger transactions without large fluctuations, which is actually beneficial for the healthy development of the entire market.

**Third is valuation reevaluation.** The influx of long-term capital often comes with a reassessment of asset fundamentals. Insurance funds typically conduct in-depth fundamental research, not just technical analysis. This may drive the valuation of mainstream coins toward more rational and sustainable directions. The space for short-term speculation may be compressed, but the value of long-term holding will become clearer.

However, it should be noted that we are currently in the stage of insurance funds gradually testing the waters, not full-scale large entry. Policy environment, regulatory framework, market access conditions, and other factors are still evolving. But the trend is clear—the number of traditional financial institutions re-evaluating the allocation value of crypto assets is increasing, and this process is irreversible.

For investors, it is necessary to adjust their mindset. If you are accustomed to extreme volatility and rapid surges and drops, the future market may seem "boring." But if you focus on long-term value accumulation, this change is actually positive—the market will become more orderly, more predictable, and more mature.