The Financial Supervisory Commission (FSC) of Taiwan is investigating the potential introduction of exchange-traded funds (ETFs) based on bitcoin.
The FSC disclosed that it is closely examining overseas exchange-traded funds and futures products. According to the FSC, limits would be progressively loosened to conform to the circumstances of the global market. The local media was informed of this.
This exploration’s context aligns with other noteworthy worldwide advancements. The momentum has been bolstered by the Federal Reserve’s move to lower interest rates as well as the impending Securities and Exchange Commission’s (SEC) assessment of the Bitcoin spot ETF in January of next year. The excitement surrounding the April Bitcoin halving, which has caused a 150% increase this year,
Taiwan Regulators Are Watching the Development of Crypto ETFs
The FSC acknowledges the potential significance of a Bitcoin index stock fund, provided that it receives SEC approval and is subsequently authorized for public investment. Sensitive to these developments, Taiwan’s domestic investment banks have long indicated a desire to launch comparable goods.
The FSC makes comparisons with its international counterparts, highlighting the spread of bitcoin ETFs and futures products across other markets.
The FSC acknowledged the listing of numerous cryptocurrency exchange-traded funds (ETFs) or the process of listing them on the Toronto Stock Exchange in Canada, the Cboe Australia Exchange, and major U.S. exchanges.
FSC Sees Using a Phased Approach
The FSC stressed a gradual approach to loosening rules surrounding cryptocurrency exchange-traded funds (ETFs) that is founded on standards and self-discipline.
The delay of blockchain and cryptocurrency exchange-traded funds (ETFs) due to concerns about their speculative and volatile nature is consistent with Taiwan’s historical caution.
Industry participants are cautiously enthusiastic as Taiwan considers this big step into the bitcoin ETF space. Some people gave private placements for foreign cryptocurrency ETFs some thought, but they later changed their minds due to issues like stricter regulatory oversight and worries about mistakes and price lags.
The regulator for Taiwan also mentioned that they may be planning something akin to “cryptocurrency concept ETFs,” which may invest in companies that sell hardware and software connected to cryptocurrencies. This would give investors exposure to the market without having a direct bearing on changes in cryptocurrency prices.