Japanese financial conglomerate SBI Holdings is reportedly launching a crypto fund that will invest in several cryptocurrencies. “I would like folks to hold it together with other assets and experience firsthand how helpful it may be for diversifying portfolios,” said an executive of the company.
SBI Holdings Launching Crypto Fund
SBI Holdings Inc. has revealed its plan to launch a cryptocurrency fund by the end of November, Bloomberg reported Thursday, calling it is the country’s first crypto fund.
Tomoya Asakura, director of SBI Asset Management and president of SBI affiliate Morningstar Japan, 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 customers who understand the risks related to cryptocurrencies, together with their high volatility. In addition, there may be a minimum investment of about one million yen ($9,122) to three million yen.
Asakura noted in the recent interview that if the first fund “goes very properly,” then the agency would like to “move quickly” to launch a second fund. He opined:
I would like folks to carry it along with different belongings and expertise firsthand how helpful it may be for diversifying portfolios.
SBI is also considering launching another fund particularly tailored to institutional buyers if there’s sufficient demand for the product, the executive noted
As a result of strict crypto regulations following hacking incidents at exchanges in Japan, it has taken SBI 4 years to get its crypto fund off the bottom, the publication conveyed. It added that the corporate had to change its plan of how the fund is offered to investors to comply with regulations.
SBI initially planned to launch its crypto fund as an investment belief, a popular investing method in Japan. However, the country’s top financial regulator, the Financial Services Agency (FSA), banned corporations from promoting crypto investments using this method. The company then modified its plan and will offer its crypto fund to buyers using a vehicle often called an “anonymous partnership.”
Asakura noted that “There may be an overwhelming perception that cryptocurrencies are highly volatile and speculative.” He plans to build a track record to show the public and regulators that cryptocurrencies can help investors diversify their portfolios.
