Japan is not considering the approval of a Bitcoin ETF, as per a spokesperson from the Financial Services Agency (FSA)
While speaking to a crypto media outlet, an FSA representative mentioned that there is no such fact that they are considering approving Exchange Traded Funds. He also added that they are not presently considering approving them.
Several sources including Bloomberg reported, last week, that Japan is exploring the likelihood of concur in Bitcoin ETFs as a substitute to Bitcoin futures.
Notably, the aforementioned reports led to a swell in anticipation toward the approval of the VanEck Bitcoin ETF filing. The aforementioned filing is set to be decided by the U.S. SEC by the end of February, as the emergence of severely regulated investment vehicles in a key market like Japan would lessen the peril of price manipulation.
Nonetheless, an FSA spokesperson said, in a statement, that the agency does not identify the requirement of any crypto-related derivatives as of now. The statement seems to solidify its stance against both cryptocurrency ETFs and futures products.
The representative explained that it is difficult for them to find the constructive and social significance of trading digital asset and cryptocurrency derivatives at present. They are of the opinion that there is no need for trading cryptocurrency derivatives at financial instruments exchanges where numerous market participants are able to trade.
It is to be noted that Japan was purportedly going to approve a Bitcoin ETF. However, regulators have denied that rumor.
A government enforcement defense and securities litigation attorney at Kobre & Kim, Jake Chervinsky, earlier said that while the commencement of an ETF in overseas markets could address what the Securities and Exchange Commission considers as a major issue in manipulation, it is expected to have a negligible impact on the decision of the SEC.
Nonetheless, it somehow demonstrates the willingness of the Japanese financial authorities and the FSA to focus on strengthening the infrastructure of the local digital asset exchange market rather than shifting to investment vehicles that could grant the asset class with the mainstream revelation in a short period of time.