BitFlyer Acquires FTX Japan, Eyes Crypto ETF Launch

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BitFlyer Holdings completes acquisition of FTX Japan, signaling a strategic move towards offering crypto custody solutions and potentially launching Japan’s first crypto-based exchange-traded funds (ETFs).

BitFlyer Holdings has made a significant move in the cryptocurrency market by acquiring 100% of FTX Japan’s outstanding shares, transforming it into a wholly-owned subsidiary. This strategic acquisition is paired with ambitious plans to launch crypto-based exchange-traded funds (ETFs) and provide custody solutions for institutional investors.

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Yuzo Kano, CEO of BitFlyer Holdings, highlighted the importance of this acquisition in a recent social media post. “A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF’s backing asset,” Kano stated. “Through our custody business, we aim to become a public service that serves as an industry infrastructure.”

The acquisition of FTX Japan, once part of the now-defunct FTX exchange, marks a significant step towards potentially launching the first spot crypto ETF in Japanese markets. Kano expressed optimism about the future of crypto ETFs in Japan, noting, “In the United States, the inflow of funds from institutional investors has accelerated since the listing of the Bitcoin ETF. I believe the day will come when ETFs will be listed in Japan.”

This development comes at a time when crypto ETFs are gaining traction globally. In the United States, Bitcoin ETFs have accounted for approximately 75% of new investments in the world’s largest cryptocurrency by mid-February, contributing to Bitcoin surpassing the $50,000 mark.

In a parallel development, asset management giant Franklin Templeton is partnering with SBI Holdings to establish a new crypto ETF management company in Japan. The two firms signed a Memorandum of Understanding on July 26, potentially paving the way for the launch of Japan’s first spot crypto ETF, subject to regulatory approval.

These moves by BitFlyer and Franklin Templeton underscore the growing interest in crypto ETFs and highlight Japan’s potential emergence as a key player in the crypto ETF market. As regulations on digital assets continue to evolve in Japan, these developments could significantly impact the country’s cryptocurrency landscape and attract increased institutional investment.

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