Bitcoin spot ETF to be launched in Japan

Six asset managers developing investment trusts

Trillions of yen expected to flow into pension accounts

A Bitcoin spot exchange-traded fund (ETF) could be launched in Japan as early as next year. The financial industry expects trillions of yen to flow in through pension accounts under the 'New Small Investment Tax-Exemption System' (NISA).

Nihon Keizai Shimbun reported on the 19th that six asset management firms, including SBI Global Asset Management, Nomura Asset Management, Daiwa Asset Management, and Mitsubishi UFJ Asset Management, are developing investment trusts that include cryptocurrencies.

The Financial Services Agency is pushing for a legal revision to allow investment trusts that include cryptocurrencies. It plans to change the regulatory framework for cryptocurrencies from the Payment Services Act to the Financial Instruments and Exchange Act, effectively treating cryptocurrencies as financial instruments. The FSA also intends to lower the tax rate on cryptocurrency trading gains from up to 55% under comprehensive taxation to 20% financial income taxation, the same as stocks and bonds.

Daiwa Asset Management is discussing product strategy through 'Global X Japan', an ETF specialist launched in partnership with Korea's Mirae Asset. SBI Global Asset Management plans to launch an investment trust product that combines cryptocurrencies such as Bitcoin and Ethereum. The goal is to grow assets under management (AUM) to 5 trillion yen three years after launch.

Tomoya Asakura, president of SBI Global Asset Management, said, "Virtual assets will be an important means for funds to move from savings to investment."

Currently, four countries — the United States, Canada, Australia, and Hong Kong — have approved Bitcoin spot ETFs.

Mansu Choi, reporter bebop@hankyung.com