The request from these institutions comes at a time when Japan is undecided on whether to allow crypto ETFs. According to information reported by Bloomberg, the proposal was submitted on October 25 under the title “Proposals for the Composition of Crypto-Asset ETFs in Japan.”

According to this proposal, it is stated that if the Japanese government decides to allow crypto ETFs, Bitcoin and Ethereum, which may attract the attention of investors, should be prioritized.

Additionally, these groups also recommend a review of Japan’s current taxation system and emphasize that taxes on income from crypto assets should be evaluated in a more separate category.

In this context, attention is drawn to the high market value of these two cryptocurrencies and their stable performance in the past. The group argues that these tokens will be an attractive option for investors who want to accumulate assets in the medium and long term.

Among the institutions that submitted the proposal is Mitsubishi UFJ Trust and Banking Corp., one of Japan’s largest financial institutions. and Sumitomo Mitsui Trust Bank, as well as bitFlyer Inc. There are also cryptocurrency exchanges such as and leading brokerage firms such as Nomura Securities and SBI Securities.

The group’s proposal also notes that the proposal reflects the collective views of the group members and does not represent individual views.

However, regulators in Japan maintain a cautious approach towards ETFs based on crypto assets.

On October 23, Oki Shiozawa, investment director of Sumitomo Mitsui Trust Asset Management, announced that the Japan Financial Services Agency (FSA) is still very cautious on this issue. Due to Japan’s regulatory structure, the approval process for spot crypto ETFs is slow.

Keisuke Kimura, Vice President of the Japan Crypto Asset Business Association, stated that in addition to the country’s restrictive regulatory structure for crypto assets, there is also a negative perception against crypto in the public. Kimura, past Mt. He emphasized that major losses such as Gox and DMM shook investors’ confidence in crypto.

Despite everything, some companies in Japan remain optimistic about crypto ETFs. For example, Franklin Templeton and SBI Holdings collaborated in July to develop new products such as crypto ETFs. Additionally, Nomura is trying to expand its activities in this area by offering Bitcoin purchase funds for institutional investors.

Despite Japan’s cautious stance, demand for crypto ETFs globally is growing rapidly. The US took an important step in this regard by approving the first spot Bitcoin ETF in January and the Ethereum ETF in July.

In the Asia-Pacific region, countries such as Hong Kong and Australia have followed a similar trend by approving spot crypto ETFs. Although it is still unclear what attitude Japan will adopt in this area, it is thought that the demands of major financial institutions may affect government policies in the future.

These developments regarding crypto ETFs may lead Japan to reconsider its regulatory approach towards crypto assets.