Taiwan Approves Access to Foreign Crypto ETFs for Professional Investors

YEREVAN (CoinChapter.com) — Taiwan's Financial Supervisory Commission (FSC) has approved the access of professional investors to foreign crypto-based exchange-traded funds (ETFs).

Taiwan Grants Professional Investors Access to Foreign Crypto ETFs

Taiwan's Financial Supervisory Commission (FSC) has granted professional investors access to foreign crypto-based exchange-traded funds (ETFs). The policy, announced on Sep. 30, 2024, introduces a re-entrustment model, where local financial institutions will act as intermediaries.

These institutions will ensure compliance with both domestic and international regulations, ultimately providing professional investors with a gateway to foreign digital asset ETFs.

Strict Criteria Limiting Crypto ETFs to Professional Investors

The FSC has limited access to these crypto ETFs to professional investors due to the high risks associated with cryptocurrencies. Only institutional investors, high-net-worth legal persons, and other qualified individuals will be eligible to invest in these funds.

To further protect investors, the FSC will require securities firms to implement a suitability assessment system, which evaluates an investor's knowledge and experience before permitting them to invest in virtual asset ETFs.

Additionally, financial professionals handling digital assets must undergo continuous education, and investors are required to sign a risk disclosure statement before making their first investment, ensuring that all parties involved are fully aware of the potential risks in these types of investments.

Growing Interest in Bitcoin ETFs

Since their introduction, Bitcoin ETFs have attracted institutional investors globally. According to available data, 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.

Taiwan's decision to allow access to foreign crypto ETFs is part of a broader global trend, with other countries also gradually integrating digital assets into their financial systems.

However, Taiwan's approach is relatively cautious, focusing on professional investors to minimize the risks associated with these volatile assets.