The new company intends to provide crypto custody solutions to institutional investors.
FTX Japan is a subsidiary of the collapsed FTX exchange.
Following its acquisition of FTX Japan, BitfFlyer Holdings intends to introduce possible crypto-based ETFs. After completing the purchase of all outstanding shares of FTX Japan, BitFlyer now owns 100% of the company.
According to a tweet by bitFlyer Holdings CEO Yuzo Kano on July 26th, the new company intends to provide crypto custody solutions to institutional investors.
The CEO stated:
“A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF’s backing asset. Through our custody business, we aim to become a public service that serves as an industry infrastructure.”
FTX Japan was a subsidiary of the collapsed FTX exchange, which went down in November 2022, resulting in the loss of customer assets worth at least $8.9 billion. FTX was once the second-largest cryptocurrency exchange in the world in terms of trading volume.
Banking on ETF Frenzy
With the acquisition of FTX Japan, the cryptocurrency sector may move closer to the creation of the first crypto ETF in the Japanese market. According to Kano, the first cryptocurrency exchange-traded funds (ETFs) in Japan will be launched soon.
ETFs have the potential to greatly augment the price increase of the underlying cryptocurrency asset. By the time Bitcoin hit the $50,000 mark on February 15th, roughly 75% of the new investment in the biggest cryptocurrency in the world had come from exchange-traded funds.
Franklin Templeton, a behemoth in the asset management industry, has teamed up with SBI Holdings to launch a brand new crypto ETF management firm, marking yet another huge step forward for crypto ETFs. On July 26, the two companies formally inked a joint venture via an MoU.
Highlighted Crypto News Today:
Federal Reserve Ends Enforcement Actions Against Silvergate Bank
