Japanese financial conglomerate SBI Holdings is reportedly launching a crypto fund that will invest in multiple cryptocurrencies. “I want people to maintain it with other assets and find out how useful it can be in diversifying portfolios,” said an executive at the company.
SBI Holdings launches crypto fund
SBI Holdings Inc. revealed plans to launch a cryptocurrency fund by the end of November, Bloomberg reported on Thursday, calling it the country’s leading cryptocurrency fund.
Tomoya Asakura, director of SBI Asset Management and president of Morningstar Japan, a subsidiary of SBI, explained that the fund will invest in a number 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 may be a minimum investment of around one million yen ($ 9,122) to three million yen.
Asakura noted in a recent interview that if the first fund is “going very well” then the company would like to “move quickly” to launch a second fund. He nods:
I want people to maintain it with other assets and find out how useful it can be in diversifying portfolios.
SBI is also considering launching another fund specifically designed for institutional investors if there is sufficient demand for the product, the executive noted.
Due to strict crypto regulations following hacking incidents on exchanges in Japan, it took SBI four years to launch its crypto fund, the publication said. He added that the company had to change its plan for how the fund is offered to investors to comply with regulations.
SBI originally planned to launch 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 fund to investors using a vehicle known as an “anonymous partnership.”
Asakura noted that “There is an overwhelming perception that cryptocurrencies are very volatile and speculative.” He plans to build a balance sheet to show the public and regulators that cryptocurrencies can help investors diversify their portfolios.
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