At the end of September, the Financial Supervisory Commission announced that professional investors can invest in foreign virtual asset ETFs through the re-entrustment of domestic securities firms. On December 24, Sino-Fung Securities took the lead and announced that domestic professional investors would be officially allowed to invest in its large investment APP and Sino-Fung Securities. Buy foreign virtual asset ETFs through Jin Securities Financial Management Network.
Financial Supervisory Commission: Institutional investors, high-net-worth users, etc. can invest in virtual currency ETFs
At the end of September, the Financial Supervisory Commission announced that professional investors would be allowed to invest in foreign virtual asset ETFs through entrustment. The Financial Supervisory Commission considers that the nature of virtual assets is complex and prices fluctuate violently, and the investment risk of virtual asset ETFs is relatively high. It is only open to professional institutional investors, high-net-worth investment legal persons, high-asset customers, legal persons or funds that are professional investors, and professional investors. Natural persons make investments. All investors except institutional investors are required to sign a risk warning letter.
Yongfeng Financial presents a Christmas gift, professional investors can invest in cryptocurrency ETFs
On December 24, Yongfeng Securities announced that qualified investors can trade virtual asset ETFs through the company starting today. In practice, Yongfeng Securities stipulates that investors must be professional investors, and before trading, they should confirm that the client's risk level matches the product, have sufficient investment experience and professional knowledge of virtual assets, and sign a risk warning document. All of the above must be met to place an order.
Currently, there are more than seventy related ETFs under Yongfeng Financial that are delegated for trading on the US stock market. The trading process and rules are the same as those for general US stock delegations. Whether it's the IBIT tracking Bitcoin prices, BITO tracking Bitcoin futures prices, or ETH tracking Ethereum prices, they are all available as tradable products in delegated trading.
In 2024, Bitcoin performance is hot, but risks must still be noted
According to Yongfeng Securities, although the cryptocurrency market is hot in 2024 and attracts a large number of investors, they should also recognize the potential risks involved. Cryptocurrencies are highly volatile, with drastic price fluctuations, which may pose significant investment risks. Furthermore, regulatory policies regarding cryptocurrencies are constantly changing around the world, and this uncertainty increases investment risks. Although cryptocurrencies offer new investment opportunities, caution must still be exercised, and investors should fully understand and be prepared to address potential risks.
Should investors choose MicroStrategy for Bitcoin investment? ETF? Or hold the spot?
As for whether traditional financial investors should invest in Bitcoin? Or should they hold it in ETF form, or buy the spot directly? Aside from legal regulations, asset management companies, such as BlackRock, which are issuers of Bitcoin and Ethereum ETFs, suggest allocating 1-2% of the investment portfolio to Bitcoin. This is akin to the barbell strategy mentioned in the book 'Antifragile,' where the downside risk of the position is controllable, yet there is an opportunity to seek higher returns compared to traditional assets.
Further Reading
How much Bitcoin should you buy? BlackRock: Allocate 1%-2% of investment, high risk cannot be ignored
The host of the well-known finance podcast (Stock Cancer), Hsieh Meng-kung, previously responded to audience questions during a Q&A session regarding whether to invest in MicroStrategy or cryptocurrency ETFs, stating that he does not invest in related assets. However, if he truly believes in Bitcoin, he thinks that directly holding the spot would be better than holding it indirectly.
This article is reprinted with permission from: (Chain News)
'Taiwanese can buy Bitcoin ETFs now! Yongfeng: Professional investors can delegate trading, what are the conditions?' This article was first published in 'Crypto City'
