- A dual exchange-traded fund (ETF) that would invest in both Bitcoin and XRP has been rejected by SBI Holdings of Japan.
- The crypto ETF plans remain at the early stages of development as the laws are being updated.
- SBI Global Asset Management is likely to file, and is aimed at retail investors.
Japanese megacorporation SBI Holdings strongly denied speculations it had applied in Japan to list a Bitcoin-XRP dual exchange-traded fund (ETF).
The firm made it clear, as the rumors circulated, that the plans with crypto ETF remain in the exploratory stage and nothing has been filed with regulators yet.
The Rumor Mill Sparks False FOMO
This week, it was reported that SBI had submitted two crypto ETFs, a twinned gold-crypto ETF and another twinned between Bitcoin and XRP.
These stories were about the earnings report of SBI, but they misinterpreted it. SBI stated that its filings were not lodged and thus no regulatory process of approval had been initiated.
The Financial Services Agency (FSA) of Japan has been unable to make a decision on the type to be adopted in defining cryptocurrencies using the Financial Instruments and Exchange Act of the state.
SBI is keeping an eye on such developments, and it has no intent to move forward on any crypto ETF applications until then.
Regulatory Wait: Why No ETF Yet?
According to the representative of SBI, the law must modify the crypto assets according to the regulations of the conventional investment products prior to the ETFs being filed. This involves tax and financial regulatory adjustments still underway.
The spokesperson stated that legal revisions will be followed by ETF submissions that deal with crypto assets. The submission schedule is not clearly defined due to the dynamism in the regulatory structure in Japan.
SBI also indicated that they will submit their application through their subsidiary, which is known as SBI Global Asset Management. First, the firm will focus on retail investors and advance its objective of democratizing alternative investments.
Crypto ETFs: Global Progress vs. Japan’s Caution
Over a year has passed since the US approved Bitcoin ETFs, which resulted in a rapid investor interest and inflows. The Japanese crypto ETF market is a poorly developed market, even though it is known to be crypto-friendly.
The SBI spokesman noted that applications and launches will be kept suspended until regulations are formalized. The recent disclosures of the company on ETFs are only through the earnings presentation.
