Japanese cryptocurrency exchange BitFlyer Holdings has now closed the acquisition of FTX Japan, readying it to launch the first crypto-linked exchange-traded funds in Japan. This development has improved BitFlyer services; especially in reliable crypto custody services for institutions.
Expansion into Crypto Custody
Yuzo Kano, CEO of BitFlyer Holdings, emphasized the strategic importance of secure storage solutions for digital assets. He stated, “A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF’s backing asset. Through our custody business, we aim to become a public service that serves as an industry infrastructure..”
The acquisition by BitFlyer offers a revitalized pathway forward for FTX Japan, which faced numerous challenges after its parent company filed for bankruptcy in the last quarter of 2022. This move brings the subsidiary under BitFlyer’s comprehensive management.
Pathway to Japanese Crypto ETFs
The anticipation surrounding the launch of Japan’s first crypto ETFs has been building, particularly with the growing interest from institutional investors globally. Kano added, “Observing the U.S. market, where the Bitcoin ETF catalyzed substantial institutional inflow, we are optimistic about a similar trend emerging in Japan.”
Moreover, this development follows recent movements in the U.S. market, where the introduction of spot Ether ETFs marked another milestone for cryptocurrency integration into mainstream financial products.
Alliances and Future Prospects
In a related development, asset management Franklin Templeton has teamed up with SBI Holdings. They plan to establish a crypto ETF management venture, which could potentially launch Japan’s first spot crypto ETF. This collaboration underscores a step in diversifying investment solutions in the region, aligning with evolving digital asset regulations.
These strategic moves by BitFlyer and its partners are setting the foundation for a more integrated and secure cryptocurrency investment environment in Japan.
Also Read: FTX Counters $264 Million Claim from Jump Trading in Court
