Bloomberg Bitcoin ETF Analysts Witness Taiwan 00939, 00940 Craze: Can’t Believe It’s Real
Taiwan Stock Exchange (TWSE) dividend ETFs 00939 and 00940 have attracted a lot of attention from Taiwanese investors due to their respective established sizes of 53.514 billion TWD and 175.2 billion TWD. This phenomenon has also made international headlines, prompting Bloomberg analyst Eric Balchunas, who frequently analyzes Bitcoin spot ETFs, to exclaim, “Unbelievable!”
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TWSE ETFs: A Record-breaking Frenzy Among Retail Investors, a Boon for International ETFs
Asian Regulators Maintain Control over Overseas ETFs: Taiwan and Japan Ban Bitcoin ETFs
Could Taiwanese Investors Cause a Surge in Bitcoin ETF Demand?
Bloomberg analyst Eric Balchunas expressed his surprise and disbelief regarding this matter. He stated that if this were true, it would be a huge victory for the international ETF industry. He cited another analyst, Rebecca Sin, who predicted that the ETF market in Asia would surpass Europe’s within the next two years.
Although the domestic ETF market is booming, entering the overseas ETF market may still prove difficult. Both the Financial Supervisory Commission (FSC) in Taiwan and the Financial Services Agency (FSA) in Japan implement a permission-based management system for overseas ETF products, requiring approval from the regulatory authorities before they can be offered to retail investors. For example, the Bitcoin spot ETF and leveraged ETF, which caused a lot of controversy in the cryptocurrency community recently, did not receive approval from the FSC in Taiwan. Similarly, the FSA in Japan does not allow the creation and offering of cryptocurrency asset ETFs.
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Stubborn FSC? The FSA in Japan Also Does Not Allow Taiwanese Investors to Trade Bitcoin ETFs and Bans Leveraged ETFs
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Legislator Ke Jung-chun Questions the FSC: Banning Bitcoin ETF and Leveraged ETF Creates a Lose-Lose-Lose Situation, Investor Rights Should Be Protected
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The interest of Taiwanese investors in overseas assets has been increasing year by year. Although Bitcoin can also be easily purchased on Taiwanese exchanges, traditional commodities purchased through trusted brokerages may be more attractive to ordinary investors. Therefore, some members of the cryptocurrency community believe that this could help increase the attention on Bitcoin. Furthermore, if the dividend-paying ETH ETF is expected to be approved, the frenzy similar to dividend ETFs may once again attract the investment community.
Currently, the FSC has requested the Securities and Futures Institute to propose complementary measures by the end of April, after which the approval of Bitcoin ETFs will be further discussed. Balancing investment demand and investor protection is a major issue for regulatory authorities.
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FSC: Bitcoin and Other Assets Are Highly Volatile with No Intrinsic Value, Overseas Platforms Should Be Used with Caution
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Further Reading
Stablecoins and ETFs in Hong Kong Driving the Cryptocurrency Boom? Animoca Brands Founder: Digital Hong Kong Dollar Has Unique Potential
Bitcoin Falls Below 70K! SEC Can Appeal Against Coinbase, Bitcoin ETFs May Be Affected.
