US spot Bitcoin ETFs in particular are experiencing continued declines as the top cryptocurrency succumbs to another wave of correction. Recent data shows these ETFs recorded net outflows for 13 consecutive trading days from mid-May to early June, with investors taking out about $4.33 billion. Despite this, they still boast a net worth worth $75.12 billion.
In a brief post on the CryptoQuant platform, analytics group
Regulatory Reform Strengthens Japan’s Bitcoin ETF Prospects
In a June 3 QuickTake post, XWIN analysts first reported that Japanese regulators are pushing for reforms that would shift the jurisdiction of cryptocurrency assets from the Payment Services Act framework to the Financial Instruments and Exchange Act, allowing them to be recognized as investment products. The seasoned analyst confidently argued that this change has gradually shifted the discussion from “if” a Bitcoin ETF will be approved to “when” it will be approved.
It is worth noting that if regulatory reform is successful, household financial assets will reach approximately 2,350 trillion yen ($14.66 trillion) and investment funds will amount to approximately 300 trillion yen ($1.87 trillion). Based on adoption rates in other markets, the Japan Spot Bitcoin ETF could attract up to 900 billion yen ($5.61 billion) in a conservative scenario that assumes events unfold relatively slowly.
In the base case and most likely scenario, deposits of the Japanese Bitcoin ETF could surge to around 1.4 trillion yen ($8.73 billion) at launch. In an optimistic scenario, which assumes strong growth, high investor interest and very positive market conditions, inflows could increase by 3.1 trillion yen ($19.34 billion) during the first year. He said that at current prices, an inflow of 1.4 trillion yen would represent demand for about 140,000 BTC.
Finally, he added that the most pressing impact of the launch of the Japanese Bitcoin ETF goes beyond a price increase. Spot Bitcoin ETFs allow investors to participate more easily, asset managers can recommend Bitcoin exposure to their clients, institutional investors can feel more comfortable investing, and Bitcoin has greater legitimacy within traditional finance.
Bitcoin price at a glance
As of this writing, the BTC price is around $61,038, down 2.81% in the last 24 hours.
Featured image from Regtechtimes, chart from Tradingview
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