Japan’s biggest asset managers signal interest in launching crypto funds: report

Group 1: Interest in Crypto Funds - Six major Japanese asset managers, with a total of $2.5 trillion in assets under management, have expressed interest in launching crypto funds [1] - The firms include Mitsubishi UFJ Asset Management, Nomura Asset Management, SBI Global Asset Management, Daiwa Asset Management, Asemane One, and Amova Asset Management [1] Group 2: Company Profiles - Mitsubishi UFJ Asset Management is part of the Mitsubishi UFJ Financial Group, which has total assets of approximately $2.7 trillion and has been exploring blockchain and crypto projects [2] - Nomura Asset Management, Japan's largest wealth manager, manages 153 trillion yen in client assets, holding a 15% share of the domestic market [2] - Daiwa Asset Management had around $213 billion in assets under management as of March 2024 [3] Group 3: Regulatory Environment - The Financial Services Agency (FSA) of Japan is considering allowing investment trusts that incorporate cryptocurrencies, which could accelerate Japanese investment in crypto [3] - Recent changes in the regulatory landscape, influenced by developments in the US and Europe, are prompting a shift in Japan's financial sector towards digital assets [4] - The FSA is preparing to reclassify Bitcoin, Ethereum, and over 100 altcoins as financial products [6] Group 4: Market Sentiment - The approval of Bitcoin spot exchange-traded funds in the US has generated optimism among Japanese investors regarding the creation of cryptocurrency investment trusts [5] - Japanese law currently restricts fund managers from including crypto in their portfolios, but the FSA is pursuing deregulatory policies to position Tokyo as a regional crypto hub [5]