Bloomberg Bitcoin ETF Analysts Look at the Taiwan 00939, 00940 Craze: Can't Believe It's Real

The Taiwan Stock Exchange's dividend ETF 00939 has a fund size of 53.514 billion New Taiwan Dollars, while 00940 has a fund size of 175.2 billion New Taiwan Dollars. This not only caused a stir among Taiwanese investors but also made international headlines, prompting Bloomberg analyst Eric Balchunas, who often analyzes Bitcoin spot ETFs, to exclaim, "Unbelievable!"

Taiwan Stock ETF Attracts Record Number of Retail Investors, A Boon for International ETFs

Bloomberg analyst Eric Balchunas expressed surprise and disbelief over this development, stating that if true, this would be a huge win for the international ETF field. He cited another analyst, Rebecca Sin, who predicted that the Asian ETF market will surpass Europe in the next two years.

Asian Regulators Maintain Control Over Overseas ETFs: Taiwan and Japan Prohibit Bitcoin ETFs

Despite the high popularity of domestic ETF markets, it may still be challenging for overseas ETFs to enter the market. Both the Financial Supervisory Commission of Taiwan and the Financial Services Agency of Japan regulate overseas ETF products through a permission-based system, requiring approval from the regulatory authorities before they can be offered to retail investors. For example, the recent heated debate within the crypto community regarding Bitcoin spot ETFs or derivative ETFs did not receive approval from the Taiwan FSC; similarly, the Financial Services Agency of Japan does not allow the creation and provision of cryptocurrency ETFs.

Stubborn FSC? Japan's Financial Services Agency also prohibits domestic trading of Bitcoin ETFs and prohibits derivative ETFs

Legislator Ke Jyun questioned the FSC: Prohibiting Bitcoin ETF derivatives is a lose-lose situation, investment rights should be protected

Could Taiwanese Investors Overload on Bitcoin ETFs?

Interest among Taiwanese investors in overseas assets has been increasing year by year. Although Bitcoin can easily be purchased on exchanges in Taiwan, traditional commodities purchased through trusted brokerages may be more appealing to the average investor. Therefore, some in the crypto community believe that this could help boost the attention on Bitcoin. Furthermore, if dividend-paying ETH ETFs are approved, similar to the dividend-paying ETF frenzy, it may once again attract investment groups.

Currently, the Taiwan FSC has asked the Securities Association to propose complementary measures by the end of April, and then consider whether to open up Bitcoin ETFs. For regulatory authorities, balancing investment demand and investor protection is a significant issue.

FSC: Assets like Bitcoin are highly volatile, lack intrinsic value, should be used on overseas platforms with caution