Japan’s regulator, the Financial Services Authority (FSA) has denied claims that the Japanese regulator has authorized Bitcoin the exchange traded funds (ETFs).
An ETF, or exchange-traded fund, is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. Although similar in many ways, ETFs differ from mutual funds because shares trade like common stock on an exchange.
An ETF listed in the much larger and more-liquid Japanese stock market could attract more interest. Still, even ETFs for more traditional asset classes such as stocks and bonds haven’t caught on with Japanese retail investors who continue to prefer mutual funds. Japan’s ETF market is worth $335 billion (with about 75 percent owned by the central bank), which is a fraction of the $3.7 trillion worth of ETFs outstanding in the U.S.
As previously reported by sources, it was thought that Bitcoin is going to be allowed exchange traded funds (ETFs) by the Japanese regulator, FSA but the financial regulator has denied such reports stating that:
At this moment, we are not exploring an approval of ETFs based on crypto assets.
Bitcoin’s recent performance in the financial market has been below par as of the end of the year 2018 and according to the claim that Bitcoin will be allowed exchange traded funds, an uplift for the digital currency could have been in place in the industry. However, the Financial Services Authority (FSA) wrote off claims that it has allowed Bitcoin ETFs.
The authorization for Bitcoin to receive ETFs would have been somewhat a revival for the cryptocurrency considering its recent downfall in the market, allowing investors to regain their interest in Bitcoin after a massive theft worth more than $500 million was reported last year from the well-established Tokyo based organization, Coincheck Inc.
The source reported that “a person familiar with the agency” believed that the Japanese regulator was considering to allow Bitcoin ETFs but to these claims, the FSA has clearly said that it has no clue who the person giving out such news is and that the agency has nothing to do with that person.
It is a fact that the exchange traded funds (ETFs) give more legitimacy to any cryptocurrency and same is the case with Bitcoin. As it has only gone downwards in recent times in the world of trade, this move might actually give it a much needed rise and gain interest of the investors who have somewhat lost their faith in the digital currency’s security. While some reports claim that the Japanese financial authority has started working on the matter and has taken this belief into consideration, the FSA itself has denied looking that way.
Moreover, additional reports from last month suggested that the Japanese Financial Services Authority (JFSA) has considered adding digital currencies into a new category which would be legalized, namely crypto assets. The purpose of the introduction of a new category for the cryptocurrencies is to ensure that investors do not purchase the digital currencies thinking that they are overseen by government institutions as a legal tender.
For this, the FSA also urged a change in the name of the term, “virtual currency” in order to get rid of this uncertainty.
Hence, it is quite obvious that the authorization of ETFs to Bitcoin will help the digital currency grow once again in the financial market and it may make itself popular among traders if the cryptocurrency is given a go ahead by the Japanese Financial Services Authority (JFSA) but the Japanese regulator has come out to deny all claims reporting that it has taken progressive steps towards this issue and has called on unknowing on the people reporting the news.