As a seasoned researcher with a keen interest in the evolving financial landscape, I find myself intrigued by the recent push from Japanese financial giants for the approval of exchange-traded funds (ETFs) involving established cryptocurrencies like Bitcoin and Ethereum. With my extensive background in analyzing market trends and understanding regulatory nuances across various global economies, it is evident that this proposal carries significant implications for Japan’s crypto industry.
A group of notable Japanese financial and digital currency companies have advocated for regulatory bodies to take a closer look at the possibility of listing exchange-traded funds (ETFs) for cryptocurrencies, with a focus on well-established tokens such as Bitcoin and Ether.
On Friday, I published a proposition by our team, which underscores that the substantial market capitalizations and steady performance of these two cryptocurrencies render them exceptional long-term investment prospects.
The businesses presented a thorough argument for considering major cryptocurrencies, emphasizing that leading coins like Bitcoin and Ethereum have demonstrated favorable long-term returns, even amid short-term price fluctuations. They pointed out that as of September 30th, the market value of Bitcoin is roughly equivalent to the Meta platform, which ranks fifth in terms of market capitalization on the US stock exchange, estimated at around 205.9 trillion yen.
In addition, it’s worth noting that the market value of Ethereum has surpassed Toyota Motor Corporation, Japan’s largest publicly traded company, which is valued at approximately 40.2 trillion yen. This indicates a growing popularity and perceived value in digital assets such as Ethereum, implying they are increasingly seen as worthwhile investments.
In consideration of potentially joining forces with other countries regarding cryptocurrency Exchange Traded Funds (ETFs), the group suggests that Bitcoins and Ethers exhibit a level of stability that could prove advantageous for investment portfolio construction, benefiting those looking to grow their assets.
Tax Reforms: A Necessary Step to Boost Crypto Investments in Japan
Beyond advocating for Exchange-Traded Funds (ETFs) that focus on Bitcoin and Ether, the group has also recommended a thorough examination of Japan’s existing cryptocurrency tax structure. At present, Japan imposes taxes as high as 55% on profits from crypto investments, which might deter potential investors. Their suggestion is to establish a distinct tax bracket for crypto earnings, possibly leading to reduced rates and encouraging increased participation in the cryptocurrency market.
This alliance includes key figures from Japan’s financial sector such as Mitsubishi UFJ Trust and Banking Corporation, Sumitomo Mitsui Trust Bank Limited, digital currency exchange bitFlyer Inc, and notable brokerages like Nomura Securities Company and SBI Securities Company. However, it’s important to note that the suggestions in the proposal reflect a collective agreement, not the personal views of each participant within the group.
Regulatory Challenges: Japanese Cautious Approach to Cryptocurrency ETFs
The Japanese financial regulatory body has been adopting a careful stance towards cryptocurrency ETFs, with their leader voicing doubts about their potential advantages in an interview last August. Nevertheless, an FSA representative disclosed that the organization would examine its strategy regarding crypto regulation, adding that the review process might take some time to finish.
The team’s plan for an Exchange Traded Fund (ETF) involving Bitcoin and Ethereum is modeled after the U.S.’s recent approvals this year. These approvals have significantly increased the appeal of digital assets among institutional as well as individual investors.
Although Japan’s administration has adopted a cautious strategy regarding cryptocurrency regulations, the prosperity of comparable funds overseas might prompt a shift in their perspective on this issue.
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2024-10-25 17:30