SBI Japan’s new fund is the first of its kind to invest in cryptocurrencies. This is quite an accomplishment considering that Cryptocurrencies are still very new and not very popular amongst other asset funds. The fund will be investing in bitcoin, ether, ripple, and so on. The fund’s objective is to ensure the safety of your investment, while at the same time delivering a steady return.
The SBI crypto-asset fund includes seven cryptocurrencies, including Bitcoin, Ethereum, Litecoin, XRP, Bitcoin Cash, Chainlink, and Polkadot, with no percentage exceeding 20%.
Tokyo’s biggest finserv firm, SBI Group, will now allow general Japanese investors to purchase cryptocurrencies via its newly launched ‘crypto asset fund’. There are seven cryptocurrencies in the fund, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP, Bitcoin Cash (BCH), Chainlink (LINK) and Polkadot (DOT).
The SBI Alternative Fund, which will manage and trade the crypto-asset fund, established it on Dec. 02 with a dedicated capital of 5 million yen, which is equivalent to approximately $45,000 at the time of writing. It is possible for the company to release the capital in smaller chunks of 1 million yen each.
Prior to purchasing, investors will need to go through an application process that includes an anonymous partnership agreement with SBI Alternative Fund. The company’s reasoning behind this move states:
“Since it is not suitable for all customers, it can only be purchased by customers who meet certain standards set by our company.”
Additionally, the crypto investments made by anonymous associations will be handled by SBI VC Trade, a sister firm that specializes in cryptocurrency trading. According to SBI, none of the seven cryptocurrencies in the crypto-asset fund will have a ratio exceeding 20%.
SBI has ensured the sustainability of the service by stating that the fund “cannot be canceled within one year,” between Feb. 1 2022 and Jan. 31, 2023. In addition to unrealized capital gains taxes, investors will be required to bear other shared expenses, such as establishment and liquidation costs.
In this fund, SBI has set an age limit of 20 to 70 and will enforce a three-month locking period for every purchase “in order to reduce investment risk by diversifying over time.” The allocation of investment ratios will be rebalanced once a month as well.
SBI contributes to Japan’s cryptocurrency adoption, as well as expanding into other jurisdictions. Coinhako, a Singaporean crypto exchange, was most recently acquired by the company.
The Monetary Authority of Singapore (MAS) approved Coinhako’s regulatory approval soon after it received funding from SBI. Cointelegraph reported that the investment was made through the SBI-Sygnum-Azimut Digital Asset Opportunity Fund, a joint venture between SBI and Sygnum Bank.
Coinhako plans to use funds from SBI and its existing international network to “expand our business to other countries in Southeast Asia”.
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