Japanese financial giant SBI Group has joined forces with U.S. asset manager Franklin Templeton to pave the way for potential approval of crypto funds in Japan. The collaboration aims to introduce spot Bitcoin exchange-traded funds (ETFs) to the Japanese market, as reported by Nikkei Asia.
In this partnership, SBI Group will hold a majority stake of 51%, with Franklin Templeton owning the remaining portion. While spot Bitcoin ETFs have already gained approval in countries like the U.S. and Hong Kong, Japan has yet to make a decision on this financial product.
The joint effort between SBI Group and Franklin Templeton indicates that Japan’s Financial Services Agency could potentially greenlight the ETF in the future, although a specific timeline has not been disclosed. The partnership is said to focus on offering crypto securities, although detailed information has not been made public.
This development comes on the heels of reports suggesting that Japan’s Government Pension Investment Fund, the largest pension fund in the country, is considering delving into alternative assets such as Bitcoin and gold. The fund is reportedly exploring the possibility of including Bitcoin and other commodities like farmland, forests, and precious metals in its investment portfolio.
In mid-February, the Japanese cabinet approved the inclusion of cryptocurrencies as assets that local investment limited partnerships firms can now acquire or hold. This move aligns with Prime Minister Fumio Kishida’s vision for “new capitalism,” which includes actively nurturing the country’s web3 industry.
The potential launch of Bitcoin ETFs in Japan could open up new investment opportunities for individuals and institutional investors alike. If approved, these ETFs could provide a regulated and secure way for market participants to gain exposure to Bitcoin without directly holding the digital asset.
Moreover, the collaboration between SBI Group and Franklin Templeton underscores the growing acceptance and integration of cryptocurrencies into traditional financial markets. As Japan continues to explore and embrace digital assets, it signals a broader shift towards mainstream adoption of blockchain technology and cryptocurrencies globally.