Taiwan Grants Professional Investors Access to Foreign Crypto ETFs

YEREVAN (CoinChapter.com) — Taiwan’s Financial Supervisory Commission (FSC) has approved the access of professional investors to foreign crypto-based exchange-traded funds (ETFs). Announced on Sep. 30, 2024, the policy introduces a re-entrustment model, where local financial institutions act as intermediaries. These institutions will ensure compliance with both domestic and international regulations, providing access to foreign digital asset ETFs.

Strict Criteria Limiting Crypto ETFs to Professional Investors

The FSC limits access to these crypto ETFs to professional investors due to the high risks associated with cryptocurrencies. Eligible investors include institutional investors, high-net-worth legal persons, and other qualified individuals. To protect investors, the FSC requires securities firms to implement a suitability assessment system. This system evaluates an investor’s knowledge and experience before allowing them to invest in virtual asset ETFs.

The FSC mandates continuous education for financial professionals dealing with digital assets. Investors must also sign a risk disclosure statement before making their first investment. This step ensures that all involved parties are aware of the potential risks in these types of investments.

Growing Interest in Bitcoin ETFs

Since their introduction, Bitcoin ETFs have gained attention from institutional investors globally. Available data shows that over 1,000 institutional investors have exposure to Bitcoin ETFs. In the United States alone, spot Bitcoin ETFs acquired 16,774 BTC in one week, while Bitcoin miners generate around 13,500 BTC monthly.

 Andre Dragosch, Bitwise’s Head of European Research, points out that the US spot Bitcoin ETFs accumulated over a month’s worth of newly mined Bitcoin in one week alone.

Above all, Taiwan’s decision to allow access to foreign crypto ETFs aligns with global trends. Other countries are also gradually integrating digital assets into their financial systems, showing a broader recognition of crypto-based financial products. Taiwan’s approach, however, remains cautious, focusing on professional investors to minimize risk.