At the end of September, the Financial Supervisory Commission announced that professional investors could invest in foreign virtual asset ETFs through domestic brokers' entrusted trading. On December 24, Yongfeng Securities took the lead by officially allowing professional investors in Taiwan to purchase foreign virtual asset ETFs through its high-net-worth investment app and Yongfeng Securities' financial website.
(Financial Supervisory Commission opens investment in foreign virtual asset ETFs for professional investors; Taiwan's institutional investment in Bitcoin is promising.)
Financial Supervisory Commission: Institutional investors, high net worth users, etc. can invest in cryptocurrency ETFs.
The Financial Supervisory Commission announced at the end of September that professional investors could engage in entrusted trading of foreign virtual asset ETFs. Considering the complex nature and high price volatility of virtual assets, the investment risks of virtual asset ETFs are higher, thus only opening up investment for professional institutional investors, high net worth investment corporations, high asset clients, corporations or funds classified as professional investors, and natural persons classified as professional investors. All investors, except institutional-level investors, must sign a risk disclosure statement.
Yongfeng Financial presents a Christmas gift; professional investors can invest in cryptocurrency ETFs.
On December 24, Yongfeng Securities announced that eligible investors can trade virtual asset ETFs through the company starting today. In practice, Yongfeng Securities specifies that investors must be professional investors and should confirm that the client's risk level matches the product, have sufficient investment experience, professional knowledge of virtual assets, and sign a risk disclosure statement before trading. All of the above must be met to place an order.
Currently, there are more than seventy related ETFs listed under Yongfeng's entrusted trading of US stocks, with trading processes and rules the same as general US stock entrusted trading. Whether it is IBIT tracking Bitcoin prices, BITO tracking Bitcoin futures prices, or ETH tracking Ethereum prices, all are available as tradable products in entrusted trading.
Bitcoin is performing well in 2024, but risks should still be noted.
Yongfeng Securities pointed out that although the virtual currency market is performing well in 2024, attracting a large number of investors, investors should also recognize the potential risks involved. Virtual currencies are highly volatile, and price changes can be drastic, posing significant investment risks. Additionally, regulatory policies regarding virtual currencies in various countries are constantly changing, increasing investment risk due to this uncertainty. Although virtual currencies offer new investment opportunities, caution is still needed to fully understand and prepare for potential risks.
Should I choose MicroStrategy for Bitcoin investment? ETF? Or hold the spot?
As for whether traditional financial investors should invest in Bitcoin, or hold it in ETF form, or directly buy the spot, excluding legal regulations, asset management companies, including Bitcoin and Ethereum ETF issuer BlackRock, suggest allocating 1-2% of Bitcoin in investment positions. This is akin to the barbell strategy mentioned in the book 'Anti-Fragile', where the downside risk of the position is manageable, yet there is an opportunity to achieve relatively higher returns compared to traditional assets.
(BlackRock suggests clients hold 1-2% Bitcoin in diversified investment portfolios.)
The host of the well-known financial podcast 'Stock Cancer', Hsieh Meng-kung, responded to a listener's question during a previous Q&A session about whether to invest in MicroStrategy or virtual asset ETFs, saying he does not have investments in related targets. However, if he truly favors Bitcoin, he believes directly holding the spot is better than holding it indirectly.
This article presents a Christmas gift! Yongfeng Securities announces that starting today, professional investors in Taiwan can invest in virtual asset ETFs through their entrusted investment services, first reported by Chain News ABMedia.
