Since the U.S. Securities and Exchange Commission (SEC) approved the listing of 11 Bitcoin spot ETFs in January, it has attracted more than US$14.8 billion in net capital inflows so far, and the fund management scale of the 11 ETFs has reached US$56 billion. However, according to Taiwan's current regulations, Chinese people are currently unable to buy and sell overseas Bitcoin spot ETFs through multiple entrustment methods. Many Taiwanese securities companies also announced on January 23 this year that the competent authority informed that considering the large price fluctuations and high risks of virtual currency commodities, In order to protect investors, for the entrusted trading of foreign securities linked to virtual currencies (such as Bitcoin), spot and futures-related commodities, only entrusted sales can be accepted for the time being, and no new entrusted purchases are allowed.
However, when Peng Jinlong, the new chairman of the Financial Supervisory Commission, went to the Finance Committee of the Legislative Yuan to give a business report on May 22, he revealed that the Securities Dealers Association had put forward a proposal on April 24, hoping to open up based on two conditions.
Peng Jinlong pointed out that since South Korea and Japan have not opened up, Singapore and Hong Kong have conditionally allowed it. After referring to international experience, the Securities Dealers Association recommended opening up. However, two supporting solutions are recommended:
- The first is to first open it to professional investors, including legal persons or natural persons with assets exceeding 30 million, rather than directly opening it to the public.
- The second is that investors must sign a risk warning letter before making a re-entrustment.
Peng Jinlong said that the exact time to open the Bitcoin spot ETF for entrusted investment is expected to be decided before the end of this year.
Financial Supervisory Commission: Bitcoin spot ETF plans to open up
Against this background, Zhang Zhenshan, director of the Securities and Futures Bureau of the Financial Supervisory Commission, once again stated this week that the current investment in Bitcoin spot ETFs by Taiwanese people is planned in the direction of opening up, and that re-entrustment will be implemented first, because there is no need to amend the law, only a letter is required. It seems that it will not be long. Later, Chinese people can make re-entrustments through overseas securities firms.
As for whether Taiwan can follow in the international footsteps and issue cryptocurrency-related ETFs? Zhang Zhenshan said that the issuance of Bitcoin spot ETFs by Investment Trust is still under discussion, because Bitcoin spot ETFs not only have issues with law amendments, but also have supporting measures:
This is because Bitcoin is not a negotiable security, so according to the Investment Trust and Investment Consulting Law, investment trust funds cannot issue Bitcoin ETFs, and there are not only legal amendment issues, but also supporting facilities. For example, Hong Kong has a management mechanism for operators, and those who have registered Only legal businesses can issue Bitcoin ETFs, so they are currently under discussion.
On the other hand, the Taiwanese version of active ETFs will soon be available. Zhang Zhenshan said that he is currently "working hard" and will see such products on the shelves as soon as the end of the year or as early as early next year. He also revealed that they are "completely unnecessary." "Tracking Index", if the law can be revised in the future to recognize virtual assets such as Bitcoin as securities, then we may soon see Taiwanese securities companies issue their own cryptocurrency ETFs.
Will the opening of Bitcoin spot ETF affect local exchanges?
As for the future opening of Bitcoin spot ETF in Taiwan, will it affect the trading volume of domestic exchanges? According to China Times News Network, local exchanges believe that opening Bitcoin spot ETFs will not affect trading volume. Taiwan exchange MaiCoin Group said:
The customer base of ETFs should be different from the existing user profile of its MAX exchange. However, in the long run, if people who buy ETFs are willing to increase their positions in the future, they may not rule out trading directly through exchanges, so it will still be Good direction.
Another Taiwanese exchange, HOYA BIT, said:
The trading of virtual asset ETFs will not be reduced to transaction volume. The opening of ETF trading can also provide investors with more diverse choices to participate in the virtual asset market in different ways.
