Japanese financial conglomerate SBI Holdings is reportedly launching a crypto fund that will invest in multiple cryptocurrencies. “I want people to stick it with other assets and see firsthand how useful it can be for diversifying portfolios,” said a manager at the company.
SBI Holdings launches crypto funds
SBI Holdings Inc. announced its plan to launch a cryptocurrency fund by the end of November, Bloomberg reported Thursday, calling it the country’s first cryptocurrency fund.
Tomoya Asakura, director of SBI Asset Management and president of SBI subsidiary Morningstar Japan, stated that the fund will invest in a range 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. In addition, there can be a minimum investment of approximately one million yen ($ 9,122) to three million yen.
Asakura recently stated in an interview that if the first fund is “doing very well”, it wants to “act quickly” to launch a second fund. He mean:
I want people to stick it together with other assets and see firsthand how useful it can be for diversifying portfolios.
SBI is also considering launching another fund specifically tailored for institutional investors if demand for the product is sufficient, the executive noted.
Due to strict crypto regulations after hacking incidents on stock exchanges in Japan, it took four years for SBI to launch its crypto fund, the publication said. It 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 top financial regulator, the Financial Services Agency (FSA), banned companies from selling crypto investments using this method. The company then changed its plan and will offer its crypto funds to investors using a vehicle known as an “anonymous partnership”.
Asakura noted, “There is an overwhelming perception that cryptocurrencies are very volatile and speculative.” He plans to build a track record of showing the public and regulators that cryptocurrencies can help investors diversify their portfolios.
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