On July 8th, the Taipei "2025 Virtual Asset Future - Derivative Product Regulatory Policy Forum" focused on "Dual Crypto ETF? Possibility and Accompanying Measures for Issuing Virtual Asset ETF Products in Taiwan", encompassing derivative products of different cryptocurrencies like Bit (BTC) and ETH. Facing the global ETF wave, can Taiwan seize the new opportunity?
Global Demand Drives Dual Crypto ETF
Global capital has shifted from single Bit to a "basket" of products. Bitwise rotating fund and BlackRock IBIT's long-term stable net inflows drove the total crypto ETF scale to $168.8 billion by the end of June, attracting $16.5 billion in the first half of the year. High volatility combined with put option strategies and crypto-US bond rotation innovations show the global market's huge appetite for crypto.
Currently in Taiwan, only professional institutions can purchase overseas ETFs through commissioned trading, while retail investors are still excluded. The key issue is that the "Fund Management Regulations" define ETF components must be "valuable securities", and the "Securities Exchange Act" does not include virtual currencies.
Lin Hong-yu, chairman of the Bit and Virtual Asset Development Association, points out that Article 3 of the "Securities Consulting Act" regarding "competent authority-approved products" may provide a shortcut, requiring only an administrative directive without major legislative amendments.
Banks as Virtual-Real Bridges
Far Eastern Commercial Bank's Vice President and AI Digital Finance Group Head, Dai Song-zhi, stated directly:
Traditional finance and the crypto are already starting to get closer, which is a good phenomenon.
He sharply points out the turning effect of the Bit ETF on the "value divergence" between financial and crypto circles. The Bit ETF allows two originally parallel lines to intersect, symbolizing virtual assets steadily moving through the three stages of "convenience, mainstreaming, and asset-ization".
Dai Song-zhi notes that Taiwan has over 13 million securities accounts, far exceeding crypto users. In the future, digital asset allocation through familiar channels like ETFs will significantly lower entry barriers.
He also emphasizes that banks have key advantages in high-asset client diversion, compliance monitoring capabilities, and trusted brands, and should actively play a promotional role. At the same time, he candidly points out three major challenges: unclear regulations, technical talent gaps, and incomplete internal trust in virtual assets, directly stating that "the real battlefield is actually the internal conceptual transformation of banks".
Dai Song-zhi's perspective not only outlines a financial business entry blueprint for virtual asset ETFs in Taiwan but also reveals the deep divide between current systems and internal culture. Banks possess high-asset client diversion capabilities, compliance experience, and brand trust. If they can provide custody services, it will be a crucial piece of the ETF puzzle. However, regulatory details and transparent frameworks are what banks are most eagerly awaiting.
Crypto Investor Protection
Are Taiwanese crypto investors currently in a regulatory gray area under the Consumer Protection Law, Financial Consumer Protection Act, and Fair Trade Act? Lin Meng-xiang, Director and Associate Professor of Financial Technology Application at Ming Chuan University, reminds:
Basically, it's not that they will "not take care of everyone", so there's not much of a problem.
In the future, if a specialized law distinguishes between investment and payment-type assets and stipulates KYC, custody, and insurance mechanisms, dual crypto ETFs can not only introduce global funds but also bring investment protection into the market.
For Taiwan to catch up with the dual crypto ETF trend, the key is to break through the "valuable securities" framework, let banks join the ecosystem, and simultaneously improve investor protection. If coordination can be achieved, this step will be not just a product innovation, but an important milestone in accelerating digital financial transformation.
