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- BitFlyer bought FTX Japan to expand into crypto custody services and spot ETFs.
- FTX Japan will be rebranded and focus on providing secure storage solutions for institutional investors.
- BitFlyer is waiting for legal approval in Japan to roll out cryptocurrency spot ETFs, similar to recent moves in the U.S.
Japanese crypto exchange BitFlyer has acquired FTX Japan, making it a wholly-owned subsidiary to target crypto custody and spot ETFs. Starting August 26th, FTX Japan will be rebranded under BitFlyer Holdings.
The primary focus will reportedly be on building a new crypto custody business, which aims to offer secure storage solutions for institutional investors.
Crypto custody and spot ETFs
BitFlyer is also eyeing the future of cryptocurrency in Japan, particularly the potential for spot ETFs. The company said they’re waiting for Japan’s legal system to catch up before rolling out ETF-related services. A representative said:
“We still need to wait for the tax system and other legal systems to be established.”
The rising interest from institutional investors in the crypto market is what inspires the push into custody services. BitFlyer says it sees a real opportunity here and they believe Japan will soon follow suit, creating a demand for similar financial products.
FTX Japan and its related entities had filed for Chapter 11 bankruptcy in the U.S., and a Delaware court approved the sale to BitFlyer Holdings on July 16, 2024.
For FTX Japan’s existing customers, there are some changes on the horizon. Accounts will be transferred to BitFlyer, Inc., provided the customers agree. The new company will also kick off a cryptocurrency deposit business, again targeting institutional clients.
BitFlyer, Inc. will maintain its licenses for cryptocurrency exchange and Type 1 financial instruments business, ensuring they can operate across a broad spectrum of financial activities.
While they’re focusing heavily on custody and ETFs, the company says the core business remains crypto sales and exchange.
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Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
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