BitFlyer Holdings has acquired FTX Japan and plans to launch potential crypto-based exchange-traded funds (ETFs). BitFlyer has acquired 100% of FTX Japan’s shares, making it a wholly-owned subsidiary.

The new business plans include offering crypto custody solutions for institutional investors, BitFlyer Holdings CEO Yuzo Kano wrote on the X platform on July 26.

“We need a company with the security technology to securely store physical BTC that will serve as the underlying asset of the ETF. Through our custody business, we aim to be a public utility that serves as industry infrastructure.”
FTX Japan was part of the famous FTX exchange, once the world’s second-largest crypto exchange by trading volume, which crashed in November 2022, causing a loss of at least $8.9 billion in user funds.

First Japanese Crypto ETFs Just a Matter of Time: BitFlyer CEO

The acquisition of FTX Japan could bring the crypto industry one step closer to the launch of the first crypto ETF in Japanese markets.

According to BitFlyer CEO Kano, the launch of Japan’s first crypto ETFs is just a matter of time. Kano added: “In the United States, the flow of funds from institutional investors has accelerated since the listing of the Bitcoin ETF. I believe the day will come when ETFs will be listed in Japan.”
ETFs can significantly contribute to the price increase of the underlying crypto asset. For Bitcoin (BTC), ETFs accounted for nearly 75% of new investment in the world’s largest cryptocurrency as of February 15, with Bitcoin surpassing $50,000.

Japanese Crypto ETFs Gain Attention After Franklin Templeton’s New Venture

In another major development for crypto ETFs, asset management giant Franklin Templeton is partnering with SBI Holdings to launch a new crypto ETF management company.

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The two firms have signed a Memorandum of Understanding (MoU) for the joint venture, according to an announcement made on July 26.

The new joint venture (JV) could also reportedly see the launch of the first spot crypto ETF in Japan. A Franklin Templeton spokesperson told in an interwiev:

“The joint venture is expected to offer a variety of investment solutions, including Franklin Templeton’s existing ETFs. As digital asset and cryptocurrency regulations continue to evolve in Japan, the new JV will launch related products subject to regulatory approval.”

This announcement comes on the heels of the first spot Ether ETFs opening for trading in the United States on July 23.

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Expected to pay several billion yen to buy all of FTX Japan’s shares, BitFlyer essentially gains control of the business, NHK said on Thursday. According to the article, the corporation intends to restart FTX Japan as a digital asset management or custody company for institutional clients.

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Just a few months before its parent business filed for bankruptcy, FTX Japan started in 2022. Among the four independently run subsidiaries FTX has moved to sell throughout its continuous bankruptcy process is this one.

Adoption of digital assets has surged dramatically in Japan recently. Based on data from the Japan Cryptocurrency Exchange Association, cryptocurrency accounts numbered more than 10 million as of April 2024, up almost 300% from the count of accounts in the nation in 2019, according to NHK.

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