BitFlyer Acquires FTX Japan, Sets Sights on Crypto Custody and ETF Services
Japanese cryptocurrency exchange BitFlyer Holdings has completed the acquisition of FTX Japan, marking a significant move in the crypto industry. The deal, announced on July 26, 2024, sees BitFlyer taking full ownership of FTX Japan, which will be rebranded as a subsidiary of BitFlyer by August 26.
Yuzo Kano, CEO of BitFlyer Holdings, emphasized the strategic importance of this acquisition, particularly in bolstering the company’s crypto custody services. “A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF’s backing asset,” Kano stated. “Through our custody business, we aim to become a public service that serves as an industry infrastructure.”
The acquisition comes in the wake of the collapse of FTX, once the world’s second-largest crypto exchange, which filed for bankruptcy in November 2022. FTX Japan, despite being part of the broader FTX group, reportedly had more assets than liabilities at the time of the collapse.
BitFlyer’s plans extend beyond custody services. The company is positioning itself to launch cryptocurrency-based exchange-traded funds (ETFs) in Japan, pending appropriate regulatory frameworks. This move aligns with recent developments in the U.S., where spot Ether ETFs were launched on July 23, 2024, following the successful introduction of Bitcoin ETFs earlier in the year.
Kano expressed optimism about the potential for crypto ETFs in Japan, drawing parallels with the U.S. market. “In the United States, the inflow of funds from institutional investors has accelerated since the listing of the Bitcoin ETF. I believe the day will come when ETFs will be listed in Japan,” he said.
The crypto ETF landscape in Japan is gaining attention from other major players as well. Asset management giant Franklin Templeton recently announced a partnership with SBI Holdings to establish a new crypto ETF management company, signaling growing interest in this sector.
As BitFlyer integrates FTX Japan and expands its services, the move could potentially accelerate the development of crypto financial products in Japan. However, the launch of such products, particularly ETFs, remains contingent on regulatory approval and the establishment of appropriate legal and tax frameworks in the country.
