[ad_1]
tl;dr
Japan begins what might be a slow embrace of cryptos. Meanwhile, the rest of the world’s financial services industry is getting fully involved.
Market Snap
Market Wrap
A quiet and gentle start to the week. There is a lot of focus now on ETH and other alts but I do try to not get distracted too much by the rest of the noise.
Curious Cryptos’ Commentary — Japan
Japan is about to join the party.
As one of the most heavily regulated financial services industries in the world, and one of the most conservative in many respects, crypto adoption in Japan was always going to be a slow burner. But perhaps we might be surprised. Perhaps that might be about to change.
Mooted amendments to the country’s “Industrial Competitiveness Act” add cryptos to the list of assets that can be held by venture capital and other investment funds.
Granting approval is only the first step, but much like BlackRock et al pushing for spot BTC EFTs in the US because of customer demand, it is unlikely that the politicians would countenance this move if it was not for some intense industry lobbying.
This is not going to presage an overnight change, but I think it is a very interesting development, which might well have some legs.
Curious Cryptos’ Commentary — Top graph
It is worth breaking this down a little, as the presentation could be confusing.
The LHS shows net weekly flows globally into BTC investment vehicles, commonly known as ETPs (exchange traded products) or ETFs (exchange traded funds), though there are some variations on this theme. In general, these vehicles look and act like stocks with a bid and offer price available to trade on an exchange, all with the shared objective of replicating the performance of the underlying asset(s).
The RHS shows the number of BTC in these funds. Looking at the number of BTC is a far more useful indicator than looking at the dollar value of those funds, in my opinion. I seem to be in the minority on this point as most analysis looks at dollar values.
[ad_2]
Source link