Coinspeaker
Japan’s Finance Regulator Skeptical of Crypto ETF Approvals
Japan’s Financial Services Agency strongly opines that utmost caution is required in deciding whether to approve spot crypto Exchange-Traded Fund (ETF) products or not. With the approval of spot Bitcoin and Ethereum ETFs in the United States by the Securities and Exchange Commission (SEC), investors in other regions have started pushing for similar products.
Japan Still Open to Spot Crypto Products
Shortly after spot Bitcoin ETFs got approved for US investors, Hong Kong also approved and listed the products. In April, Australia announced its plans to introduce Bitcoin and Ethereum ETFs as inspired by the US. This Australian version started trading many weeks ago.
Generally, this widespread acceptance of crypto ETFs in these regions including the UK has intensified the global desire for the product amongst investors.
Amidst this push, Hideki Ito, commissioner of the Financial Services Agency, noted in an interview that a number of people believe crypto assets “do not necessarily contribute to the wealth creation of the Japanese people in a stable and long-term manner.”
Though Ito is quite new to the position of Commissioner, he made it clear that these other nations have taken a far more “conservative stance toward crypto investment by retail investors.” Ever since he assumed office, the commissioner has contributed significantly to the regulator’s effort towards mobilizing household assets. This is all in a bid to foster a self-sustaining economic growth cycle.
Much more than ever, the FSA is very focused on intensely scrutinizing whether any investment products and services will suit investors based on their knowledge and experience. As an agency interested in maintaining a pro-technology stance, FSA does not plan to totally rule out the possibility of spot crypto ETF products. However, it wishes to perform robust due diligence before taking this crucial step.
Spot Bitcoin and Ethereum ETFs Sees Rough Week
Meanwhile, the crypto ETFs in the United States are showing good performance only that the last few days came with some level of turbulence. The broader crypto market saw a massive crash that trickled to all of its sub-sectors. Blockchain analytics firm SoSo Value reported that Bitcoin investment products saw a combined outflow of $149 million on August 6.
Fidelity Investments’ Bitcoin ETF (FBTC) led the losses with a substantial outflow of approximately $65 million, a notable increase from the $58.04 million withdrawn from the fund the previous day. Also, Grayscale Bitcoin Trust (GBTC) posted a significant outflow of $32.18 million. On this same day, ARK Invest and 21Shares’ ARKB saw an outflow of $28.88 million. Franklin Templeton’s Digital Holdings Trust (EZBC) recorded a $23 million outflow.
Spot Ethereum ETFs have also experienced a rough week filled with outflows but BlackRock’s ETHA recorded huge inflows on August 6. Precisely, the BlackRock iShares Ethereum trust netted more than $108 million in inflows.
