SBI Group has unveiled a plan to introduce the first dual-asset ETF in Japan, offering combined exposure to Bitcoin and XRP, with a possible debut on the Tokyo Stock Exchange.
What is the new Bitcoin-XRP ETF proposed by SBI Group in Japan?
The financial giant SBI Holdings aims for an absolute first: to present the first Japanese ETF focused simultaneously on Bitcoin and XRP.
The announcement came in the group’s quarterly report, released on May 9, 2024, and anticipates the creation of innovative products that blend the world of cryptocurrencies with classic investment instruments.
In particular, the second product described by SBI Group involves a joint ETF on the two main cryptos, with the intention of listing it directly on the Tokyo Stock Exchange, the most important stock market in Japan.
This is a historic turning point for the local market, still heavily regulated on the offering of instruments linked to digital currencies.
In detail, the plan of SBI Group includes two distinct products:
A mixed gold-crypto ETF with a 51% allocation on gold ETF and 49% on crypto ETF (including those on Bitcoin).
A fully crypto ETF on Bitcoin and XRP to focus on the two blockchain most relevant for volume and history.
The first product, called “investment trust,” will be offered as a public fund in Japan, helping to expand accessibility to new asset classes among retail and institutional investors.
The second, entirely focused on the exchange between Bitcoin and XRP, aims to become the reference title for those who want to diversify in the crypto landscape through regulated channels.
SBI Holdings aims to start as soon as the green light from the authorities arrives. The quarterly report clearly states that the launch is subject to “regulatory approval”.
In concrete terms, the company suggests that the dialogue with the Financial Services Agency (FSA) is ongoing, but the game is not yet closed.
The approval would be an unprecedented case in Japanese financial history, where the crypto ETF market is regulated very strictly and no similar product has ever been listed before.
Currently, therefore, the wait remains: the phase could still be that of pre-filing, so it takes weeks or months for the product to officially reach the public.
What are the implications for the Japanese market?
The arrival of a multi-currency Bitcoin-XRP ETF would mark a revolution for Japan:
Accessibility – Local investors would finally have regulated access to two top crypto through an officially listed ETF.
Innovation – The proposed asset allocation (between gold and crypto, but also between two different cryptos) is a unicum in Asia.
Domino effect – In the event of approval, SBI Group’s move would create pressure on other financial players to innovate in their ETF offerings, including potential opening to Ethereum or memecoin.
New regulation – The Financial Services Agency is already working on a revision of the legal classification of crypto in Japan, which could facilitate the emergence of additional similar products.
In summary, it is a potential historic opening, with ripple effects on the trading volume of Bitcoin, XRP, and, in the future, the entire regulated crypto-financial sector in Japan.
The rumors are circulating, but at the moment there are no definitive confirmations: some reports mention a request already filed with the Financial Services Agency, while others indicate that the launch is still in the internal planning and pre-filing phase.
On one hand, the publication of the plan on the official report confirms SBI Group’s determination to carry forward the project.
On the other hand, until the Japanese FSA provides a formal response, the process may experience slowdowns or modifications, especially in case of changes in regulations.
With the potential debut of the Bitcoin-XRP ETF, the landscape of crypto investment in Japan is approaching more mature markets like the United States and Europe, where ETFs on Bitcoin have contributed to the mainstream adoption of the asset.
However, the dual exposure (Bitcoin + XRP) represents an innovation set to bring change globally and to test the response of the authorities.
Institutional investors could thus find a regulated vehicle to allocate portfolios on digital assets. However, caution: the very strict regulation of the Japanese context implies that the products will be closely monitored and approval is not guaranteed.
Are there any risks or warning to consider?
Being the first initiative of this kind in Japan, the regulatory risk remains high. Furthermore, the allocation on volatile assets like Bitcoin and XRP implies the awareness of possible intense bull and bear movements, contrary to traditional ETFs on gold or stocks.
The impact of SBI Group’s move could be disruptive on the entire Japanese crypto sector. Much will depend on the timing and conditions imposed by the FSA for the final approval of the Bitcoin–XRP and gold-crypto ETFs.
If everything goes well, a new season of hybrid and regulated products will open, set to reshape the relationship between traditional finance and blockchain. However, the future depends on the decisions of the regulators: everything can change in the coming weeks.
For enthusiasts of the sector and investors, it remains essential to follow official updates and online communities to monitor developments in real time.
