- The acquisition positions bitFlyer to offer crypto custody solutions for institutional investors.
- Franklin Templeton has also partnered with SBI Holdings to create a new crypto ETF management company.
Japan’s crypto exchange bitFlyer Holdings has acquired FTX Japan and disclosed plans to launch cryptocurrency exchange-traded funds (ETFs). The company announced this acquisition on Friday, which could reportedly be an important step toward introducing the first spot crypto ETF in the Japanese market.
bitFlyer Holdings finalized the purchase of all outstanding shares of FTX Japan, making the crypto exchange its wholly-owned subsidiary. This move marks an expansion for bitFlyer and also positions the company to offer crypto custody solutions for institutional investors.
FTX Japan, formerly part of the collapsed FTX exchange, was once among the largest crypto exchanges by trading volume before its downfall in November 2022. The collapse resulted in the loss of approximately $8.9 billion in user funds.
See Related: FTX Japan Reopens Allowing Crypto And Fiat Withdrawals For Investors
A Step Closer To Crypto ETFs
The Japanese market might soon witness the launch of its first crypto ETFs, a development eagerly anticipated by industry insiders. Yuzo Kano, the CEO of bitFlyer Holdings, emphasized the potential impact of ETFs, stating, “ETFs can significantly contribute to the underlying crypto asset’s price appreciation.” He noted that by February 15, ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it crossed the $50,000 threshold.
Adding to the momentum, asset management giant Franklin Templeton partnered with SBI Holdings to create a new crypto ETF management company. The firms formalized their collaboration with a memorandum of understanding signed on July 26, Cointelegraph reported. According to a spokesperson for Franklin Templeton, this joint venture might also result in the introduction of Japan’s first spot crypto ETF.
The announcement closely followed the launch of the first spot Ether ETFs in the United States, which began trading on July 23. This series of developments underscores a growing global interest in crypto ETFs and suggests an expanding market in Japan.
