As a seasoned financial analyst with a background in traditional markets and a keen interest in the digital asset space, I am particularly intrigued by BitFlyer’s recent acquisition of FTX Japan and their plans to transform it into a crypto custody giant. Having closely followed the cryptocurrency market for years, I have witnessed both the rapid growth and the significant challenges that this industry presents.
Last Friday, BitFlyer, a cryptocurrency exchange based in Japan, finished acquiring all the outstanding shares of FTX Japan. As a result, FTX Japan is now completely owned by BitFlyer.
On July 26, 2024, a deal was sealed, following the filing for US bankruptcy protection by FTX Trading and related entities, including their Japanese branch, on November 11, 2022.
Plans To Transform FTX Japan Into A Crypto Custody Giant
Following the US Bankruptcy Court’s approval of the sale order on July 16, BitFlyer has effectively incorporated FTX Japan into its business. Exciting transformations lie ahead as we leverage this acquisition for maximum benefit.
During the transformation process, FTX Japan is planning to adopt a new name by August 26, 2024. The proposed new moniker for this entity is “the new custodial company.”
The company announced that the rebranding is a thoughtful decision aimed at bringing the newly acquired business in line with BitFlyer’s primary mission: offering advanced cryptocurrency custodial solutions tailored for institutional investors.
Institutional investors are increasingly seeking entry into the cryptocurrency market, leading to the essential policy foundation for crypto custodianship: providing sophisticated security solutions tailored to this unique asset class.
To satisfy the increasing interest from institutional investors in Japan for secure storage of cryptocurrencies, BitFlyer intends to expand its business by specializing in crypto custody services under the BitFlyer Group brand.
BitFlyer Bets On Crypto Spot ETFs
On Fridays declaration, it was disclosed that the upcoming custodian is considering providing crypto asset ETF-related services at some point in the future, contingent upon setting up the requisite legal and regulatory structures within Japan.
In alignment with current securities regulations in the United States, the SEC has given its green light to the listing of multiple Bitcoin spot ETFs back in January, and more recently, approved Ethereum spot ETFs as of this week. BitFlyer also shared their perspective on the issue:
Through our newly established custodial company, we aim to offer crypto custody solutions and crypto-linked ETF services, adding distinct value to the bitFlyer Group.
In a recent update on social media, BitFlyer’s CEO, Yuzo Kano, shared his observation that there has been a notable surge of institutional investments into the platform in the past few months. He attributed this trend to the emergence of regulated Bitcoin Exchange-Traded Funds (ETFs) in the market. Furthermore, Kano expressed his optimism that cryptocurrency ETFs will eventually be available for listing in Japan.
“Our custody business aspires to transform into a publicly beneficial entity, acting as the foundation of the industry,” Kano expressed.
Currently, FTX’s own token, FTT, is priced at $1.41 during this writing process. This represents a more than 6% rise following BitFlyer’s recent acquisition announced on Friday. Additionally, trading volume for FTT has surged by nearly 18%, amounting to approximately $13 million as per CoinGecko statistics.
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2024-07-26 18:12