Tuesday, June 25, 2019

Japan Plans To Venture Into Crypto ETF Despite Futures Snug

The financial watchdog of Japan plans to explore exchange-traded funds that track the asset class despite it abandoning its plan of listing derivatives based on Cryptocurrencies. This was revealed by a person familiar with the matter to Bloomberg.

Japan Set To Explore Crypto ETF

The Plan to implement ETFs tracking digital assets in Japan could lead to the revival of interest of investors in the crypto marker, despite the previous decision of the financial watchdog of the country to bar instruments such as Bitcoin and ethereum futures in the country. The Japanese crypto market which is one of the largest in the world adding the ETF option will be a major booster to the world’s crypto market.

According to a spokesperson of the financial watchdog that spoke in anonymity stated that financial services agency is at the moment considering the interest of the industry in ETF’s tracking digital currencies.

The decision to abandon crypto futures by the financial agency was reached a month ago when the regulators decided against the pursuit of the revision of the nation’s security law which would have enabled crypto futures and options to be listed on the major financial exchanges. The decision was reached after concluding that such product would achieve little than increase speculation.

The decision was reached after a month long of investigating why it was unable to prevent the Coincheck hack. As the agency is backing out its support for derivatives, it has also decided to give more oversight power to the self-regulatory body, place more initial coin offering under the scope of its security law and also cap leverage that can be offered by crypto brokers as revealed last month. This is expected to serve as a backbone for a bill the liberal democratic party will submit during current diet session that will end in March, and become a law in 2020.

Crypto ETF and Its Expectations

Crypto ETF is considered as a major factor needed to aid the interest of institutional investors in Cryptocurrency, however different proposal for this has been botched by the European and American investors citing worries of price manipulation and security.

Meanwhile, investors trading in commodities underpinned to ETF to be free from the risk of manipulation. An ETF listed in the Japanese stock market could attract more interest, being the largest after the USA ETF market.

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