The head of Japan’s finance regulator said "cautious consideration” is needed in deciding whether to follow the likes of Hong Kong and the U.S. by approving crypto-linked exchange-traded funds.
Many people believe crypto-assets "do not necessarily contribute to the wealth creation of the Japanese people in a stable and long-term manner,” said Hideki Ito, commissioner of the Financial Services Agency, in an interview.
His remarks come after a softening in the stance of regulators globally on ETFs that invest directly in Bitcoin and Ether. The U.S. Securities and Exchange Committee grudgingly gave the green light to the first spot-Bitcoin ETFs in January after a 2023 court reversal in a case brought by Grayscale Investments. Those products have drawn net inflows of $19.2 billion to date. The first Ether-linked ETFs went live in the U.S. in July.
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