The world sees Taiwan! 00940 attracted more than 170 billion in gold, attracting the attention of Bloomberg analysts
Taiwan has recently set off a boom in subscriptions for high-dividend ETFs. 00940 has raised more than NT$170 billion before listing and is expected to be officially listed on April 1. With the help of major media and Internet celebrities, 00940 successfully emerged from the circle. A bank clerk broke the news that even the aunt who didn’t understand it wanted to get rid of the fixed deposit and invest in this ETF.
Not only Taiwan, the 00940 craze has also attracted the attention of the well-known foreign media "Bloomberg". "Bloomberg" reported on March 18 that the total funds raised by two new ETFs this month reached NT$223 billion. The latest 00940 ended subscription on the same day, and the amount of funds raised also hit a record.
Taiwan Central Bank President Yang Jinlong described this situation as a swarm of investment, a bit like the "herding effect" often talked about in financial markets, and reminded everyone to pay attention to risks when investing.
Regarding Taiwan’s ETF craze, Bloomberg analyst Eric Balchunas, who often tracks Bitcoin spot ETFs, expressed “disbelief” and said that if the news is true, it will be a huge victory for the global ETF market.
He also pointed to predictions by another Bloomberg analyst, Rebecca Sin, who had previously predicted that Asia’s ETF market would surpass Europe’s in the next two years.
Image source: X/Eric Balchunas
Taiwan ETF asset size doubled in 3 years
Data from the Financial Supervisory Commission in January this year showed that between 2020 and 2023, Taiwan’s ETF assets doubled from 1.74 trillion yuan to 3.56 trillion yuan, accounting for approximately 5.6% of the Taiwan stock market value of 62.63 trillion yuan (at the end of 2023). In addition, as of November 2023, the total number of investors in Taiwan stock ETFs has exceeded 8 million, which is equivalent to one in every three Taiwanese investing in ETFs.
Why do Taiwanese people love ETFs? According to the "Digital Times" report, Zhang Xi, chairman of Cathay Investment Trust, believes that it is related to the following four points:
Investment is simple and constituent stocks are transparent
Good return rate and interest rate
Young people can easily find information to promote to their elders
Some insurance products (savings, investment insurance) or savings funds are transferred to ETFs.
When fixed deposits cannot beat inflation, Taiwanese people abandon traditional savings insurance and fixed deposits and turn to stock deposits and ETF deposits. ETFs that can receive high dividends are one of the priority investment options for lazy people. Interestingly, although 00940 has not yet been listed, the "00940 Self-Rescue Society" has appeared on Facebook to provide investors with complaints and exchanges.
Bitcoin spot ETF has received a total inflow of 12.1 billion magnesium funds, but Taiwan still prohibits re-commissioning
The United States approved multiple Bitcoin spot ETFs in early January this year. Recent capital inflows have performed well, and are even considered by some institutions and analysts to be the main driving force behind Bitcoin's record highs. Farside Investors data shows that from January 11 to March 28, U.S. Bitcoin spot ETFs attracted a total of approximately $12.1 billion in capital inflows, with BlackRock’s $IBIT products accounting for the larger net inflows.
Although the United States has passed a Bitcoin ETF, this product, which is relatively risky for traditional financial markets, seems to be hitting a wall in Taiwan.
In the recent inquiry, Huang Tianmu, chairman of the Financial Supervisory Commission, still revealed a cautious attitude. Huang Tianmu believes that virtual assets are highly speculative and have no intrinsic value, so transaction risks are quite high.
In the face of the listing of Bitcoin ETF in the United States, the public hopes that Taiwan should also open up the demand for entrusted purchases. Huang Tianmu has played the self-discipline card and asked the securities dealers association to self-discipline "not to open it temporarily" and to develop supporting measures. Further measures are expected to be made by the end of April. decision. If Taiwanese people are eventually allowed to purchase U.S. Bitcoin ETFs, it will affect traditional investors who are interested in Bitcoin. ETF investment methods that are no different from stocks will help lower the threshold for ordinary people to invest in Bitcoin.
Bitcoin ETF leads the bull market, but the Taiwan Financial Supervisory Commission is still banning it? Chairman: High risk and no intrinsic value
