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According to an SBI executive, the company might explore opening a second crypto fund based on the success of the first.
SBI Holdings, a Japanese banking powerhouse, is apparently aiming to launch one of the country’s first crypto funds.
According to a Thursday Bloomberg report, SBI, aiming to have a crypto fund available by the end of November, will offer residents of Japan the opportunity to invest in Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), XRP, and others. Tomoya Asakura, a director and senior managing executive officer at SBI, said the company could see the fund growing to several hundred million dollars, with investors likely being required to deposit a minimum of 1-3 million yen, or $9,093-$27,279 at the time of publication.
“I want people to hold [crypto] together with other assets and experience firsthand how useful it can be for diversifying portfolios,” said Asakura. He added that SBI would consider launching a second crypto fund depending on the success of the first.
The crypto fund might be formed in the midst of the country’s financial watchdog, the Financial Services Agency, or FSA, prohibiting corporations from operating crypto investment trusts. The authority also needs crypto exchanges to be registered on a national level and platforms that want to operate in Japan to be licenced.
According to Asakura, he will seek to demonstrate to the Japanese public and the FSA that cryptocurrencies, rather from being “highly volatile and speculative,” may be part of a well-balanced financial portfolio. SBI has been working for four years to launch the cryptocurrency fund, which it now intends to execute through a “anonymous partnership” — partnering with an investor that agrees to supply capital to SBI, an arrangement sometimes used for private equity funds in Japan.
“[People] will understand that we aren’t recommending cryptocurrencies as a tool of speculation,” said Asakura.
According to reports, Japanese regulators have been hiring additional people in order to draught stronger worldwide standards for digital currencies. The country’s Ministry of Finance was said to be considering hiring experienced regulators in an effort to probe the crypto and blockchain industry globally in July, while the FSA has already formed a new unit to monitor digital currency regulation.