SBI Group Unveils Plans for Japan’s First Bitcoin-XRP ETF

Japanese financial giant SBI Holdings plans to launch the country’s first dual-asset cryptocurrency exchange-traded fund (ETF), offering exposure to both Bitcoin and XRP.

In its earnings report Thursday, the company outlined plans for two crypto-based ETF products. The first product proposal combines gold and crypto asset ETFs bundled into a trust. 

According to the company, this would allocate 51% into gold-based ETFs and 49% into crypto-asset ETFs, such as Bitcoin ETFs; this will be publicly offered as an investment trust in Japan.

The second proposal combines two top cryptocurrencies, Bitcoin (BTC) and XRP (XRP). The company plans to list this product on the Tokyo Stock Exchange, the largest stock exchange in Japan. 

SBI to launch products upon regulatory approval

The company said it aims to launch the products “upon regulatory approval,” suggesting that discussions with the authorities may be ongoing. If approved, the funds would be the first crypto ETFs publicly offered in Japan’s tightly regulated financial market.

In the earnings report, SBI also mentioned the efforts of the Financial Services Agency (FSA) to reclassify crypto assets in Japan, suggesting that the products may be under development in preparation for a shift in regulatory frameworks in the country. 

Despite news reports claiming that an XRP-Bitcoin ETF has been filed, it remains unclear whether the products have already been proposed to the FSA or are still in the pre-filing and planning phase. 

Cointelegraph reached out to the SBI Group and the FSA for more information, but had not received a response by publication. 

Related: XRP custody goes live for Korean institutions via BDACS amid ‘strong interest’

Japan’s financial regulator proposed reclassifying crypto

On June 24, the FSA proposed recognizing specific crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA), which governs traditional financial products in the country. This could pave the way for ETFs and lower crypto taxes in the country. 

Japan currently recognizes crypto as a means of payment under the country’s Payment Services Act. Certain tokens will be treated as securities if the FSA’s proposal is approved.