Japan crypto ETFs boosted by Franklin Templeton and SBI Holdings partnership

Asset management giant Franklin Templeton is partnering with SBI Holdings to establish a new cryptocurrency exchange-traded fund (ETF) management company in another major development for crypto ETFs.

The two firms officially signed a Memorandum of Understanding (MoU) for the joint venture on July 26, according to an announcement shared with Cointelegraph.

The new Japanese asset management firm aims to offer the “new generation of investors” greater access to more diversified investment vehicles, according to Jenny Johnson the president and CEO of Franklin Templeton, who wrote:

“The extensive reach of SBI’s iconic brand amongst younger audiences in Japan aligns well with our commitment to help this new generation of investors achieve their goals through our future-focused investment solutions. This strategic partnership underscores our shared belief that best-in-class financial capabilities should be more accessible to investors.”

The new joint venture could offer young investors more access to crypto-based ETFs and introduce newfound capital for the underlying digital asset that can contribute to its price appreciation.

The announcement came shortly after the launch of the first spot Ether ETFs in the United States, which went live for trading on July 23.

SBI Holdings aims to promote Web3 businesses: CEO

SBI Holdings, one of Japan’s leading financial conglomerates, is aiming to further promote the advancement of Web3 firms.

The firm is looking to further promote Web3 businesses through its new joint venture, according to Yoshitaka Kitao, the president and CEO of SBI Holdings. He said:

“We are proud of being a fast-rising financial group in Japan leveraging technology as one of its key sources of growth, and promoting various businesses related to Web3. We look forward to partnering with Franklin Templeton whose business includes a focus on digital assets and provision of industry-leading digital asset technology.”

Other investment giants are also looking to pour more investment into Web3. Notably, billionaire Michael Novogratz’s Galaxy Asset Management raised $113 million for a new crypto venture fund, that was announced on July 25.

What about Japanese crypto ETFs?

Franklin Templeton’s new joint venture introduced the possibility of a spot crypto ETF in Japan.

When asked about the possibility of launching an ETF, a Franklin Templeton spokesperson told Cointelegraph that it may happen once the regulatory framework permits:

“It is expected that the joint venture will provide a diversified range of investment solutions including Franklin Templeton's existing ETFs. As regulations on digital assets and cryptocurrencies continue to evolve in Japan, the new JV will launch related products subject to regulatory approval.”

Franklin Templeton is among the most notable crypto ETF issuers, that recently launched its US spot Ether ETF. The firm is also considering the launch of a Solana ETF after the successful ETH ETF debut.