September 22, 2021

SBI Holdings to Launch First Crypto Fund In Japan

SBI Holdings are planning to launch their first crypto asset fund by December. The financial conglomerate revealed that the crypto fund would invest in popular digital currencies like Bitcoin, Litecoin, XRP, and Ethereum. According to SBI executive Tomoya Asakura, the fund will pave the way for investors to diversify their portfolios. 

Asakura, who oversees asset management for SBI, said he wants people to experience how useful it is to diversify their portfolios. In an interview with Bloomberg, the financial expert said that he plans on making the second fund if the first fund becomes a success. He predicts that the fund will grow to hundreds of millions of dollars. However, Asakura stated that only investors who understand calculated risks associated with crypto should invest. The required amount ranges from a million Japanese Yen to three million.

Tough Crypto Regulations Still Prevalent

Amid the strict regulations on cryptocurrency prevalent in several countries, SBI’s move to start a crypto fund is commendable. In the last three years, interest in cryptocurrency has risen tremendously in Japan, with data showing that more than two million Japanese have invested in digital assets since 2018. The numbers are growing, and there’s no doubt that Japan will become a powerhouse in the crypto world in a few years. 

The tight regulations were partially responsible for the launch of the SBI fund now. The idea to start up the SBI fund began four years ago. Numerous times, the fund was prevented from being launched early enough due to these regulations and scandals. The FSA banned several companies that traded in cryptocurrencies through investment trusts, which SBI Fund was initially built upon. 

Asakura, in response to the tight crypto regulations, admitted the volatility and speculation of cryptocurrencies. There’s an overwhelming perception about the digital currency world, but what he tends to achieve with SBI is different. He added that SBI is built on a solid track record and will prove to regulators that investors can get a more resilient portfolio in cryptocurrency, just like stocks and other conventional investments. Although Asakura made no statement regarding the return on investment, he said that crypto funds could be a satellite asset that will boost returns. 

SBI Second Cryptocurrency Fund Underway

Asakura stated that the second SBI crypto fund might get underway pending the success of the first one and the demand. The second investment vehicle will be reserved for institutional investors only.