Japan Could Break the Mold by Approving the First-Ever Crypto Exchange-Traded Funds (ETFs)
According to an all-new report released by a respected media outlet yesterday, the Japanese government is currently gathering information regarding institutional interest in regards to crypto offerings such as ETFs.
A Closer Look at the Issue
If latest news stories are to be believed, cryptocurrency exchange-traded funds (ETFs) might be on their way to the market sooner rather than later. In this regard, it is being said that the Japanese financial regulator is currently making immense strides to create a legal framework for crypto ETFs that will help them enter the economic mainstream in the near future.
To be even more specific, the Japanese Financial Services Agency (FSA), recently revealed that it has been procuring data so as to gauge public interest regarding an ETF related financial offering.
As per a trustworthy source that wishes to remain unnamed, the number of institutional players interested in a cryptocurrency ETF is “significantly high” at this point— so much so that the FSA is once again looking at the possibility of releasing such a financial tool soon.
More on the Matter
A closer look at the above mentioned crypto ETF survey shows us that the Japanese FSA is seriously evaluating the fate of ETF-type financial instruments that could once again inject a lot of excitement and financial impetus into this burgeoning space.
However, at this point in the article it is should also be noted that the above stated news follows the recent CoinCheck hacking scandal — wherein the exchange lost over USD $500 million worth of funds. As a result of the mishap, Japanese authorities severely restricted crypto-trade related activities within the nation’s borders (including the creation of a BTC ETF).
Despite all of this confusion, the FSA is now planning to reconsider its stringent stance on the matter and is looking to once again open the topic for serious discussion.
With this information in mind, if the FSA provides positive feedback to the proposed ETF-related law, the acceptance of the final legislation will lie entirely in the hands of the Japanese Liberal Democratic Party— a political entity that is known for its pro crypto stance.
In rounding off this piece, it is worth noting that if Japan is able to successfully usher in novel ETF-based crypto offerings, it will become the first economic superpower to do so.
With that being said, it should be remembered that over the past year or so, the US SEC has denied a number of bitcoin-based ETF applications. However, a spokesperson for the commission recently stated that the government body is now re-considering the proposals put forth by VanEck and SolidX.
Last but not least, if an authoritative governing body such as the JFSA was to legalize cryptocurrency ETFs, the legitimacy of the altcoin industry would increase quite substantially.