On September 30, 2024, Taiwan's Financial Supervisory Commission (FSC) approved foreign crypto exchange-traded funds (ETFs) for professional investors. This decision allows institutional investors to access global digital asset ETFs through a re-entrustment process, facilitating investment management by local financial institutions and foreign asset managers.
Professional investors include institutional investors, high net worth individuals, and legal entities. The FSC has mandated that securities firms develop a suitability system and assess clients' expertise in virtual assets before facilitating investments. Clients must also sign a risk warning prior to their initial purchase.
This move reflects Taiwan's growing interest in digital assets, contrasting with other Asian markets that remain cautious. For example, South Korea's Korea Institute of Finance has expressed concerns regarding spot ETFs' potential economic impacts, while Japan's financial regulator has called for careful consideration before approving crypto ETFs. Meanwhile, Hong Kong has already approved its first spot Bitcoin ETF in April 2024. As of now, Bitcoin (BTC) is trading at $63,984, reflecting a 2.7% decrease over the past 24 hours.