The Japanese Financial Services Agency (FSA) illustrates a cautious approach towards cryptocurrency-based exchange-traded funds (ETFs) in comments at the finance committee of the upper house of the National Diet on May 30, as reported by Cointelegraph Japan.
As per the report, local politician Takeshi Fujimaki pointed out during the meeting that soon a crypto-based ETF might get approved in the United States by the Securities and Exchange Commission (SEC). He further cited both positive and negative statements released by SEC’s commissioner Hester Peirce.
In saying so, Fujimaki points out that Japan should not be left behind in this record and thus should look into a possible ETF. He went on to include hacking as a threat and stated that with ETFs, crypto assets are entrusted to the banks and kept by custodians. Moreover, Fujimaki claimed that such an asset would result in growth for the market by making institutional investment easier subsequently lowering the volatility.
Though it does not seem FSA is in the same boat of enthusiasm for ETF. An FSA representative presented opposing views during the meeting and claimed that cryptocurrencies such as bitcoin (BTC) lack intrinsic value, resulting in unbearable price volatility. To which Fujimaki replies by reiterating his support of ETF, as it could diminish the volatility of cryptocurrencies, making them an easier investment.
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