BitFlyer Holdings has completed its full acquisition of FTX Japan and announced plans to launch potential crypto-based exchange-traded funds (ETFs). This will make FTX Japan a wholly owned subsidiary of BitFlyer.
Providing crypto custody solutions
The new company will offer crypto custody solutions to institutional investors. BitFlyer Holdings CEO Yuzo Kano said in a statement that a company with the right security technology is needed to securely store physical Bitcoin (BTC) as the underlying asset for the ETF.
“With our custody activities, we want to become a public service that serves as an industrial infrastructure,” Kano said.
FTX Japan was part of the infamous FTX exchange, once the world’s second-largest cryptocurrency exchange by trading volume. In November 2022, FTX collapsed, losing at least $8.9 billion in user funds.
Launch of Japanese Crypto ETFs
The acquisition of FTX Japan could bring the crypto industry closer to the launch of the first crypto ETF in the Japanese market. According to Kano, the launch of the first Japanese crypto ETFs is only a matter of time. He added that in the United States, the inflow of funds from institutional investors has accelerated since the listing of the Bitcoin ETF. “I believe the day will come when ETFs will be listed in Japan,” Kano said.
ETFs can contribute significantly to the price increase of the underlying crypto asset. For Bitcoin (BTC), ETFs accounted for about 75% of new investments on February 15, when the BTC price surpassed the $50,000 mark.
Collaboration with Franklin Templeton and SBI Holdings
In another major development for crypto ETFs, asset manager Franklin Templeton has partnered with SBI Holdings to establish a new crypto ETF management company. The two firms officially signed a Memorandum of Understanding (MoU) for the joint venture on July 26.
According to a Franklin Templeton spokesperson, the joint venture is expected to offer a diversified range of investment solutions, including Franklin Templeton’s existing ETFs. As the regulation of digital assets and cryptocurrencies evolves in Japan, the new joint venture will launch related products, subject to regulatory approval.
This announcement comes shortly after the launch of the first spot Ether ETFs in the United States, which went live for trading on July 23.
With these developments, Japan is taking a major step towards integrating crypto ETFs into the financial market, which could mean a new wave of investment opportunities for investors.
