Taiwan Stock Exchange Traded Funds (ETF) with a scale of NT$53.514 billion and NT$175.2 billion respectively have not only caused a sensation among Taiwanese stock investors but also made international headlines, prompting Bloomberg analyst Eric Balchunas, who frequently analyzes Bitcoin spot ETFs, to exclaim, “Unbelievable!”
Toggle
Taiwan Stock ETF Causes Record Retail Rush, Benefiting International ETFs
Asian regulators maintain control over overseas ETFs: Taiwan and Japan prohibit Bitcoin ETFs
Could Taiwanese stock investors buy out Bitcoin ETFs?
Bloomberg analyst Eric Balchunas expressed astonishment and disbelief at this. He stated that if this were true, it would be a huge victory in the international ETF market. Referring to another analyst, Rebecca Sin’s prediction, he believed that the Asian ETF market would surpass Europe in the next two years.
Despite the high popularity of domestic ETF markets, it may not be easy for overseas ETFs to enter the market. Both the Taiwan Financial Supervisory Commission and the Japan Financial Services Agency adopt a licensing management approach for overseas ETF products that must be approved by the regulatory authorities before being provided to retail investors. For example, the highly debated Bitcoin spot ETF or duplicate entrustment products have not received approval from the Taiwan Financial Supervisory Commission. Similarly, the Japan Financial Services Agency does not allow the creation and provision of cryptocurrency ETFs.
Advertisement – Text continues below
(
Stubborn Financial Supervisory Commission? Japan Financial Services Agency likewise prohibits trading Bitcoin ETFs among locals, banning duplicate entrustment
)
(
Legislator Ke Junchun questions the Financial Supervisory Commission: Prohibiting Bitcoin ETF duplicate entrustment is a lose-lose situation, should safeguard investment rights
)
Taiwanese stock investors have shown increasing interest in overseas targets year by year. Although Bitcoin can be easily purchased through Taiwanese exchanges, for the average investor, purchasing traditional products through a trusted broker may be more appealing. Therefore, some in the cryptocurrency community believe that there is a chance to increase attention to Bitcoin. Furthermore, if dividend-paying ETH ETFs are approved, similar to the frenzy of dividend-paying ETFs, it may once again attract investment groups to enter the market.
Currently, the Taiwan Financial Supervisory Commission has asked the Securities Association to submit a comprehensive plan by the end of April and then consider whether to open up Bitcoin ETFs. For the regulatory authorities, balancing investment demand and investor protection is a major issue.
(
Financial Supervisory Commission: Assets like Bitcoin are highly volatile, lack intrinsic value, and should be used on overseas platforms with caution
)
ETFs
Bloomberg
Bitcoin
Related Reading
Can stablecoins and ETFs in Hong Kong drive the cryptocurrency boom? Animoca Brands founder: Digital Hong Kong dollar has unique potential
Bitcoin falls below 70K! SEC may appeal to Coinbase, impacting Bitcoin ETFs.