BitfFlyer Holdings plans to acquire FTX Japan and launch a cryptocurrency-based exchange-traded fund (ETF).
BitFlyer has completed the acquisition of 100% of the outstanding shares of FTX Japan, becoming a wholly owned subsidiary of FTX Japan.
Yuzo Kano, CEO of bitFlyer Holdings, said in a July 26 post on X that the new business plans to provide cryptocurrency custody solutions for institutional investors.
“We need a company with security technology that can safely store the physical BTC that will be used as the backing asset for the ETF. We aim to become a public service that serves as industrial infrastructure through the custody business.”
FTX Japan is part of the infamous FTX exchange that was once the world’s second-largest cryptocurrency exchange by trading volume, but which collapsed in November 2022, causing a loss of at least $8.9 billion in user funds.
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The First Japanese Crypto ETF Is Just a Matter of Time: bitFlyer CEO
The acquisition of FTX Japan could bring the crypto industry one step closer to launching the first cryptocurrency ETF in the Japanese market.
Kano added that it is only a matter of time before Japan launches its first cryptocurrency ETF.
“In the US, the inflow of institutional investors has accelerated since the listing of the Bitcoin ETF. I believe that the day will come when an ETF is listed in Japan as well.”
ETFs can contribute significantly to the price appreciation of the underlying cryptocurrency asset. In the case of Bitcoin (BTC), ETFs accounted for about 75% of new investments in the world’s largest cryptocurrency as of February 15, and it surpassed $50,000.
Related: EU Markets Paving the Way for First Ether Staking ETF: dYdX CEO
Japanese Cryptocurrency ETF Gets Attention Following Franklin Templeton’s New Venture
In another major development in the cryptocurrency ETF space, asset management giant Franklin Templeton is teaming up with SBI Holdings to launch a new cryptocurrency ETF management company.
According to an announcement shared with Cointelegraph, the two companies officially signed a memorandum of understanding for the joint venture on July 26.
The new joint venture could also result in the launch of Japan’s first spot cryptocurrency ETF, a Franklin Templeton spokesperson told Cointelegraph.
“The joint venture is expected to offer a diverse range of investment solutions, including Franklin Templeton’s existing ETFs. As regulations on digital assets and cryptocurrencies continue to evolve in Japan, the new joint venture will launch related products subject to regulatory approval.”
The announcement comes on the heels of the launch of the first spot Ether ETF in the United States, which began trading on July 23.
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