Japan’s Finance Group Advocates Bitcoin, Ether for Crypto ETFs

Key Takeaways

Financial institutions in Japan are advocating for crypto ETFs that focus primarily on Bitcoin and Ether.
The recommendations include a reassessment of tax regulations concerning crypto earnings.

A consortium of Japanese firms has recommended that discussions related to the creation of crypto ETFs emphasize prominent tokens such as Bitcoin and Ether.

This effort arises as Japan evaluates aligning its regulations with global trends permitting these financial products.

Participating entities include significant institutions like Mitsubishi UFJ Trust and Banking Corp, brokerages such as Nomura and Daiwa Securities, and cryptocurrency platforms like bitFlyer—the leading crypto exchange in Japan—and Bitbank.

They pointed out that Bitcoin and Ether’s substantial market sizes and consistent performance render them appealing for investors looking to accumulate assets over the medium to long term.

Their suggestions were released on Friday, also advocating for a reassessment of the tax structure applicable to crypto assets, particularly stressing the need for separation in taxing income derived from digital currencies.

The introduction of crypto ETFs in the US earlier this year represented a pivotal point for the digital asset sector, which has historically contended with regulatory barriers concerning the establishment of funds linked to Bitcoin and Ether.

Interest in Bitcoin and digital currencies in Japan continues to grow. Metaplanet, a Tokyo-based company, has adopted Bitcoin as a strategic reserve asset to counter Japan’s debt exigencies and the resulting yen instability.

The company currently possesses 855 Bitcoin, valued at around $56 million. Additionally, Metaplanet has started applying MicroStrategy’s BTC Yield strategy to assess how its Bitcoin acquisitions influence shareholder value.