Japanese financial conglomerate, SBI holdings, are in the process of releasing a new cryptocurrency fund that will give investors exposure to crypto.
This new currency will be the first fund of its kind available to traders in Japan. Currently, Japans financial regulators, the FSA (Financial Services Agency), do not allow companies to operate crypto investment trusts. The FSA also requires a strict licencing of crypto exchanges and any crypto platforms that are looking to cooperate in the country.
The SBI crypto will be released despite these strict rules and aims to show the public, and the FSA, that crypto can play a huge role in a well-balanced investment portfolio. SBI hope to break down the beliefs that all crypto is highly volatile and unreliable and encourage the FSA to relax their rules.
SBI has been developing their crypto fund for four years. The company now plan to launch the fund using an anonymous partnership- this is frequently used for private equity funds in Japan.
The new crypto fund will allow investors to add a variety of cryptocurrencies, including Bitcoin, Ethereum and Litecoin to their broader portfolios. The fund will target long-term retail investors and, accordion to the president of SBI affiliate Morningstar Japan K.K, has the potential to reach several hundred million dollars.
The fund will have $9,000- $27,000 minimum investments- targeting more experienced traders who understand the volatility of the market as well as other capital risks. If the launch is successful, SBI may launch a second one.
The fund is being launched amidst tightening restrictions, by the FSA, to show the true benefits that investing in cryptocurrency can have.
“I want people to hold it together with other assets and experience firsthand how useful it can be for diversifying portfolios,”
– Tomoya Asakura
SBI is the first of many financial companies in Japan to make moves towards launching a brand new cryptocurrency fund. If the fund is successful, this could completely change Japanese viewpoints of cryptocurrency
Cryptocurrency is an excellent asset to hold. The popularity of crypto among traders is only rising and signifies just how quickly the coins could take over our payments as we know them.
An increase in trading in Japan could influence stock prices. More demand for cryptocurrencies from Japanese citizens will push prices up so, you may notice the value of your crypto stocks increasing when the new fund has been launched.
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