4 months ago
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The company is preparing to offer crypto spot ETF services once the Japanese legal and tax frameworks are in place.
bitFlyer Holdings Inc, one of Japan’s leading cryptocurrency exchanges, has announced the successful acquisition of FTX Japan. According to the Friday announcement, bitFlyer has obtained 100% of FTX Japan’s outstanding shares, making it a wholly-owned subsidiary. The subsidiary will now be rebranded under the bitFlyer umbrella by August 26, 2024.
Interestingly, the move fuels bitFlyer’s ambitious plans, which come on two major fronts. Firstly, the company is seeking to improve its crypto custody services with advanced security measures for institutional investors. It also hopes to offer services related to cryptocurrency spot exchange-traded funds (ETFs) in the near future. Per bitFlyer, however, that would have to wait till the legal system in Japan is fully established.
bitFlyer Brings New Directions to Crypto Custody and ETFs
As earlier mentioned, once the newly acquired FTX Japan is rebranded and integrated into bitFlyer’s operations, the firm will focus on providing advanced crypto custody solutions. This transition will see the company launch a fully advanced crypto custody business targeted mainly at institutional investors. According to the firm, this custody business will feature high-security measures crucial for safeguarding digital assets. An official statement issued in that regard reads:
“Our extensive expertise in blockchain technology and our proprietary security-focused wallet solution reinforce our commitment to securing institutional investments.”
It might be worth noting that bitFlyer’s decision to improve its custody service and possibly venture into ETF offerings has all to do with a growing trend among institutional investors. These investors are increasingly seeking secure entry points into the crypto market.
With the US Securities and Exchange Commission’s recent approval of 11 Bitcoin spot ETFs in January 2024, bitFlyer anticipates a similar push in Japan. To this end, the company is preparing to offer crypto spot ETF services once the Japanese legal and tax frameworks are in place.
Japanese Crypto Industry Set to Take on New Shape
This acquisition follows FTX Japan’s bankruptcy filing under Chapter 11 of the US Bankruptcy Code. The sale order was approved by the US Bankruptcy Court for the District of Delaware on July 16, 2024. This means that the management of FTX Japan has now been transferred to bitFlyer Holdings Inc.
The transfer of management, however, holds significant implications, first for bitFlyer, and the broader crypto sector.
Notably, bitFlyer has been keen on stabilizing and expanding operations in Japan, which is viewed as an emerging market. Now, this acquisition affords it the perfect opportunity to do so. The company plans to maintain the necessary licenses for cryptocurrency exchange and Type 1 financial instruments businesses, ensuring compliance and operational continuity.
