Japanese financial giant SBI sets up crypto funds

The Japanese financial conglomerate SBI Holdings is launching a crypto fund that will invest in several cryptocurrencies. “I want people to keep it along with other assets and see how useful it can be for diversifying portfolios,” said a company executive.

SBI Holdings launches crypto funds SBI Holdings Inc. announced plans to launch a crypto fund by the end of November, Bloomberg reported Thursday, calling it the country’s leading crypto fund.

Tomoya Asakura, director of SBI Asset Management and president of Morningstar Japan, a subsidiary of SBI, stated that the fund will invest in a variety of cryptocurrencies, including Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin.

He added that the fund is aimed at clients who understand the risks associated with cryptocurrencies, including their high volatility. There can also be a minimum investment of around one million yen ($ 9,122) to three million yen. Asakura stated in a recent interview that if the first fund is doing “very well”, it would like to “act quickly” to create a second fund.

He agrees: I want people to stick it with other assets and find out how useful it can be for diversifying portfolios. SBI is also considering launching another fund specifically for institutional investors if demand for the product is sufficient, the board said.

Due to strict crypto regulations that followed hacking incidents on Japan’s stock exchanges, it took four years for SBI to launch its crypto fund, according to the publication. He added that the company had to change its plan for how the fund is offered to investors in order to comply with regulations.

SBI originally planned to set up its crypto fund as an investment trust, a popular investment method in Japan. However, the country’s main financial regulator, the Financial Services Agency (FSA), has banned companies from selling crypto investments using this method.

The company then changed its plan and will offer its crypto funds to investors who use a vehicle known as a “joint venture”. Asakura noted, “There is an overwhelming perception that cryptocurrencies are very volatile and speculative.” He plans to take stock to show the public and regulators that cryptocurrencies can help investors diversify their portfolios.