There are around a dozen countries that have spot bitcoin (BTC) ETFs on their stock exchanges. But Japan is not one of them – yet.
The situation for the country of the rising sun could change thanks to certain alliances and business movements that are being formed.
One such alliance is being formed by the Japanese financial conglomerate, SBI Holdings, and the American fund manager, Franklin Templeton . According to the Japanese press, both companies will form an asset manager that will focus primarily on cryptocurrencies.
Nikkei.com experts say the new company could be approaching the bitcoin ETF market, given that there are signs of "possible regulatory relaxation" in Japan.
Jenny Johnson, CEO of Franklin Templeton, said:
“The broad reach of SBI’s iconic brand among younger audiences in Japan aligns well with our commitment to helping this new generation of investors achieve their goals through our future-focused investment solutions. This strategic partnership underscores our shared belief that world-class financial capabilities should be made more accessible to investors.”
Jenny Johnson, CEO de Franklin Templeton.
bitFlyer buys FTX Japan
Another fact that indicates that bitcoin ETFs in Japan are getting closer to being launched is the fact that the Japanese exchange bitFlyer acquired 100% of the shares issued by FTX Japan. This was the subsidiary of the exchange led by Sam Bankman-Fried (currently sentenced to 25 years in prison for fraud).
According to CoinPost, a news portal specializing in the bitcoin ecosystem in the Asian country, before August 26, FTX Japan will change its name and, under the umbrella of bitFlyer Holdings, a new cryptocurrency custody business will be launched.
It is detailed that the new company plans to offer digital asset custody services with advanced security measures aimed at institutional investors as its main business.
In addition, bitFlyer spokespeople have noted that in the future, if legal regulations allow, services related to spot cryptocurrency ETFs will also be offered. “It is necessary to wait for regulation, including tax regulation, but if spot cryptocurrency ETFs are allowed in Japan, we consider offering related services that meet the needs of financial institutions such as fiat banks,” they detailed.
Japan, a gigantic stock market
The potential arrival of bitcoin and other cryptocurrencies on Japanese stock exchanges is no small feat. This is the third largest stock market in the world, after the United States and China.
In market capitalization, Japanese stock exchanges exceed 6 trillion (million million) dollars .
As can be seen in the table below, the Japanese market far outstrips other countries where bitcoin ETFs are already in circulation , such as Canada, Hong Kong and Brazil:
List of the 25 largest stock markets in the world. Source: Wikipedia.
Therefore, if Bitcoin were to reach the traditional Japanese stock market, it would have a huge positive impact on its reputation as a financial asset and on its price, as it would open the doors to a financial giant.
