SBI Holdings launches Japan’s first crypto fund
Japanese financial conglomerate SBI Holdings has launched the country’s first cryptocurrency fund that consists of seven different digital currencies.
The fund includes cryptocurrency staples such as bitcoin, ethereum, xrp, litecoin, bitcoin cash, chainlink, and polkadot.
SBI Holdings particularly emphasized the diversification benefits of the cryptocurrency fund, rather than its speculative qualities. As such, SBI’s digital asset unit aims for investors who understand risks associated with cryptocurrency volatility.
Due to these risks, the fund – dubbed SBI Alternative Fund GK – requires a minimum investment of a minimum of roughly 1-3 million yen ($9,000-$27,000).
Effectively, the new investment vehicle represents a partnership agreement between the fund investors and the SBI fund as the custodial manager of their crypto assets.
“If profits are obtained from the operation, the amount after deducting various expenses will be distributed to the customer. However, the distribution of profits is not fixed, and if a loss occurs due to operations, etc., the principal of the investment may be damaged and a loss may be incurred. This product cannot be canceled halfway for one year (February 1, 2022 to January 31, 2023). This product is an investment of 5 million yen or more in units of 1 million yen. For individual investors, the amount equivalent to profits is treated as miscellaneous income, and as a general rule, it is necessary to file a final tax return,” the statement further reads.
SBI formulates a unique approach
Japan’s biggest online brokerage has been providing its global clients with cryptocurrency trading services since 2018. However, it took nearly five years to establish “Japan’s first cryptocurrency fund for general investors,” largely because of the county’s tightening restrictions over cryptocurrency investing.
Tokyo’s Financial Service Agency (FSA) rejected the SBI’s original plan to launch a Greyscale-like cryptocurrency investment trust.
Aiming to expand its cryptocurrency portfolio, SBI Holdings Inc has recently made a strategic investment in Singapore’s first licensed crypto exchange Coinhako.
Before that, the Japanese conglomerate bought local exchange Tao Tao. Also in 2020, SBI’s UK arm had fully acquired cryptocurrency market maker and liquidity provider, B2C2, which was the latest example of how mainstream giants and crypto startups are tying up.
Moreover, other subsidiaries at SBI groups are active in other blockchain projects. Apart from its Japanese security token offering (STO), for example, SBI additionally invested in San Francisco-based STO startup, Securitize, and enterprise blockchain firm, R3. Also, SBI maintains investments in Ripple and the MoneyTap blockchain payments app.