A group of Japanese companies has suggested that if the Japanese government moves forward with cryptocurrency-based exchange-traded funds (ETFs), those for Bitcoin and Ethereum should be given priority.
According to Bloomberg, the group made this known in a proposal titled “Recommendations for the Composition of Crypto Assets ETFs, etc. in Japan,” submitted to the Japanese government amid ongoing uncertainty about the country’s position.
The proposal claimed the significant market value and “stable track record” of both cryptocurrencies make them attractive options for investors looking to “build assets over the medium to long term.”
The group comprises leading financial institutions, including trust banks like Mitsubishi UFJ Trust and Banking Corp. and Sumitomo Mitsui Trust Bank, alongside crypto exchanges such as bitFlyer Inc. and brokerages like Nomura Securities and SBI Securities. Notably, the proposal includes a disclaimer stating that the views expressed reflect a consensus among the group members rather than individual opinions.
Notably, Japan’s regulators have been accused of taking a cautious approach toward spot crypto ETFs, in contrast to the more progressive stances in the U.S. and Hong Kong. Oki Shiozawa from Sumitomo Mitsui Trust Asset Management recently declared that the Financial Services Agency (FSA) is not ready to approve crypto ETFs. Keisuke Kimura of the Japan Cryptoasset Business Association noted that public scepticism, fueled by past scandals like the Mt. Gox incident, contributes to this cautious regulatory environment.
However, some Japanese firms remain optimistic about the possibility of financial products issued in the country. Franklin Templeton and SBI Holdings recently partnered to establish a crypto ETF management company. According to the terms of the agreement, SBI Group will hold a 51% stake, while Franklin Templeton will own 49%. Both companies are banking on the speculations that crypto ETFs would eventually be approved in Japan, even though the FSA has yet to make a definitive decision on the matter.
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