US authorities have again approved spot ethereum ETFs following the launch of bitcoin exchange-traded funds (ETFs). Recently, spot ETFs have been approved by the regulatory bodies of various countries. As the US authorities then took action in Hong Kong and currently Japan is planning to do so. Notably, BitfFlyer Holdings has acquired FTX Japan and plans to potentially launch crypto-based exchange-traded funds (ETFs). BitFlyer has now become a wholly owned subsidiary of FTX Japan. Because it has completed the acquisition of 100% of the country's outstanding shares .
Especially now there are investors who are investing in the crypto industry, but we know that these industries are very unstable and the security issue here is negligible. Hence ETFs will act as backing assets to provide security to investors and to develop physical structures in the hands of security technology. Spot ETF approval may be the plan to provide crypto custody solutions especially for new business institutional investors. A company needs to provide security if that security is to be provided and crypto custody solutions are to be planned. And in that case it has the security technology to safely store the physical BTC that will serve as the ETF's backing asset. ETFs aim to be a public service that acts as an industrial infrastructure.
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[source](https://pixabay.com/photos/etf-scrabble-tiles-typography-8282274/)
Many of us may remember FTX which was part of a defunct Japan-based crypto exchange. In particular we may remember its extinction and also its disappearance from the market which took away a huge fund of customers. It was an exchange that was once the world's second largest crypto exchange by trading volume. That nearly disappeared two years ago, resulting in a loss of at least $8.9 billion in user funds. And for all these reasons, FTX Japan's acquisition could bring the crypto industry one step closer to launching the first crypto ETF in the Japanese market.
We know that the flow of funds from institutional investors into the country has accelerated since the time when ETFs were approved by the US Securities and Exchange Commission. Because ETFs can significantly contribute to the appreciation of the underlying crypto asset. ETFs accounted for nearly 75% of new investments in the world's largest cryptocurrency in the first two months of this year since ETFs were approved. Another important point is that asset management giant Franklin Templeton is working on another major development for crypto ETFs.
Aiming at that development, they are establishing a new crypto ETF management company and are partnering with SBI Holdings for that. That's why they've taken on new joint ventures and may be the first spot crypto ETF to be approved in Japan. That's why it is expected that the joint venture will offer a range of investment solutions, including Franklin Templeton's existing ETFs, its spokesperson claimed. The reason behind this is that the regulation of digital assets and cryptocurrencies continues to evolve in Japan. And hence the new joint venture is currently expected to launch related products subject to regulatory approval of the venture. However, such an approval may come as a relief to many and look to the future as Japan may soon give that approval.
