A coalition of Japanese financial institutions is urging the government to concentrate on key cryptocurrencies like Bitcoin and Ether in discussions surrounding the potential approval of cryptocurrency exchange-traded funds (ETFs).
As reported by Bloomberg, a collection of Japanese companies submitted several recommendations on October 25, titled “Recommendations for the Composition of Crypto Assets ETFs, etc. in Japan.” The nation is still undecided on whether it will approve this financial instrument.
The proposals highlight that there is a strong consensus among stakeholders that should Japan choose to move forward with crypto ETFs, priority should be given to Bitcoin and Ethereum. Additionally, the group calls for a reassessment of the current tax framework, specifically advocating for a separation of taxes on income generated.
The recommendation underscores that the significant market capitalization of both cryptocurrencies and their “reliable performance” appeal to investors looking to “accumulate assets over the medium to long term.”
The coalition includes prominent financial entities such as trust banks like Mitsubishi UFJ Trust and Banking Corp. and Sumitomo Mitsui Trust Bank, alongside crypto exchanges like bitFlyer Inc, and brokerages such as Nomura Securities and SBI Securities.
The group made it clear in the proposal that the opinions expressed reflect a consensus of the collective members rather than individual viewpoints.
On October 23, Oki Shiozawa, an investment director at Sumitomo Mitsui Trust Asset Management, indicated that Japanese regulators are still wary of approving spot crypto ETFs. This caution is attributed to the conservative stance of Japan’s Financial Services Agency, the governmental body responsible for authorizing financial products.
Keisuke Kimura, vice-president of the Japan Cryptoasset Business Association, echoed these concerns, noting that the country faces ongoing “regulatory hurdles” and negative public sentiment towards cryptocurrency due to past events, such as the Mt. Gox incident and issues with DMM, which caused substantial investor losses.
However, some Japanese firms maintain an optimistic outlook on cryptocurrencies. In July, Franklin Templeton and SBI Holdings formed a partnership to create new offerings, including crypto ETFs. Additionally, Nomura has introduced a Bitcoin adoption fund aimed at institutional investors.
Conversely, there is a global trend moving towards crypto ETFs, with the U.S. approving its first spot Bitcoin ETFs in January and Ethereum ETFs in July. Other nations in the Asia-Pacific region, such as Hong Kong and Australia, have also begun to greenlight their own spot crypto ETFs.
