Japan Could Be the First to Create a Crypto ETF

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The crypto world is clamoring for a Bitcoin ETF, and this can clearly be seen from the negative price movements every time the US Securities and Exchange Commission (SEC) declined another ETF application. While the SEC is busy declining ETF applications, the Japanese Financial Services Authority (JFSA) has been gathering data and opinions regarding the possibility of a Japanese based Bitcoin ETF. If enough institutional investors and fund houses show an interest in the product, the JFSA could give the green light for the world’s first Bitcoin ETF!

A Second Shot for a Japanese ETF

Only a month ago, the JFSA shot down any notion of a Bitcoin related ETF. However, given the fact it’s about to launch new crypto regulations to further tighten security in the industry, the JFSA is giving the ETF a second thought. The added security measures will shore up the Japanese crypto industry and protect it from further hacks, meaning an ETF wouldn’t be exposed to so many negative events emanating from Japan.

Can American Traders Use the ETF?

For now, the JFSA is only considering the idea of a Bitcoin ETF so it’s a little hard to tell. However, history and other financial products can give us a little insight into how the ETF might play out with investors from other countries. It’s unlikely that any American brokers will offer the ETF, meaning it will be hard work for Americans to trade in. If an American sets up an account with a broker that does allow trading of the ETF, the trader would then be able to gain exposure to the product. Unfortunately, many brokers don’t allow for US citizens to sign up due to FATCA regulations – meaning finding a broker could be tough work.

Will the SEC Follow Suit?

The big question on everyone’s tongues is will the SEC ever approve a Bitcoin ETF? There is enough evidence to support the conclusion that in time the SEC will approve an ETF, but it’s not likely to be in the next couple of years. It has already shut down every application that has been submitted, leaving many institutional investors feeling dejected. However, if the JFSA does in fact launch an ETF, then we could see a bit of movement from the SEC as it looks to reestablish America as the crypto capital of the world.

For now, all of this is mere speculation as the JFSA is simply investigating the possibility of an ETF. If it does go ahead, we could see crypto markets rally significantly, led by Asian traders. We aren’t likely to hear anything from the JFSA anytime soon about its decision, so stay tuned!