According to Bloomberg, Japan’s Financial Services Agency may be considering approving Bitcoin ETF proposals. According to anonymous sources, the FSA has abandoned plans to allow crypto-related derivatives such as physically-backed futures (Bakkt) from trading in Japan and is instead looking at ETFs.
Some believe FSA is being bearish by not allowing derivatives to enter. Others argue that derivatives based on CME or CBOE have deflated Bitcoin’s value instead of pushing it higher. The hype surrounding a full-fledged crypto ETF could attract a bullish outlook from the surrounding.
Sources claim that FSA is working hard to “gauge industry interest in Bitcoin ETFs” as they will offer investors an alternative to BTC derivatives. Bloomberg insiders suggest that ETFs will be considered the best way to go down if the Liberal Democratic Party pushes a governmental bill by March. This could mean that the law could become effective by 2020. This bill is purported to amend Japan’s securities legislation and the Payment Services Act. These topics are of great interest to crypto enthusiasts in Japan.
In the U.S.
Although Japan-based Bitcoin ETFs seem to have a higher probability of success, the ecosystem is still waiting for the U.S. Securities and Exchange Commission to approve a Bitcoin ETFs based on the many applications it has received.
VanEck is a strong supporter of crypto and has been pushing for approval for its ETFs to be approved in the USA. A memorandum from the SEC dated November 28th 2018, has shown that representatives of VanEck and SolidX discussed Bitcoin in a closed-door session.
The SEC further delayed commenting on the application. The SEC-stamped document was published January 6th. It claims that the government agency will be using its right to delay a decision on the application up until February 27, 2019. Analysts and commentators anticipated the delay. Many did not like the additional delay.
It is currently a waiting game to see who approves a Bitcoin ETF first.