Japanese Financial Institutions Urge Government to Prioritize Bitcoin and Ether Crypto ETFs

A group of Japanese financial institutions are urging the government to focus on major tokens such as Bitcoin and Ether in talks of allowing exchange-traded funds for cryptocurrencies.

A group of Japanese financial institutions have jointly submitted a proposal to the government, urging it to prioritize major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) in discussions regarding exchange-traded funds (ETFs) for digital assets.

According to a Bloomberg report on Oct. 25, the group, titled "Recommendations for the composition of crypto assets ETFs, etc. in Japan," submitted a series of proposals to the government regarding the potential introduction of crypto ETFs in the country.

The group's proposal reportedly highlighted that a majority of members agreed that if Japan were to permit crypto ETFs, they should prioritize Bitcoin and Ethereum for the funds. The institutions also called for a review of Japan's taxation system, particularly recommending the separation of tax on income earned.

The proposal stated that the large market capitalization of the two cryptocurrencies and their "stable track record" would make them appealing to investors looking to "build up assets over the medium to long term."

The group includes major trust banks like Mitsubishi UFJ Trust and Banking Corp. and Sumitomo Mitsui Trust Bank, crypto exchanges like bitFlyer Inc, and brokerages like Nomura Securities and SBI Securities.

In the proposal, the group noted that the views expressed in the proposals are a consensus among the group members and not necessarily their individual opinions.

As previously reported by Cointelegraph, investment director at Sumitomo Mitsui Trust Asset Management Oki Shiozawa stated on Oct. 23 that Japanese regulators are still wary of approving spot crypto ETFs. This is because the Financial Services Agency (FSA) — the government body responsible for approving financial products — is still very conservative.

Vice-president of the Japan Cryptoasset Business Association Keisuke Kimura also noted that the country faces "regulatory constraints" and negative public perception toward crypto due to past incidents, such as those involving Mt. Gox and DMM, which led to large losses for investors.

However, some Japanese firms are showing optimism toward crypto, with Franklin Templeton and SBI Holdings announcing a partnership in July to develop new products, including crypto ETFs. Nomura has also rolled out a Bitcoin adoption fund for institutional investors.

Meanwhile, there has been a global push for crypto ETFs, with the U.S. approving its first spot Bitcoin ETFs in January, followed by Ethereum ETFs in July. Countries in the Asia-Pacific region, like Hong Kong and Australia, have also followed suit by approving their own spot crypto ETFs.

The above is the detailed content of Japanese Financial Institutions Urge Government to Prioritize Bitcoin and Ether Crypto ETFs. For more information, please follow other related articles on the PHP Chinese website!