US Bitcoin ETFs are seeing continued bearish performance, especially as the flagship cryptocurrency succumbs to another wave of correction. Recent data indicates that these ETFs recorded 13 consecutive trading days of net outflows between mid-May and early June, with investors withdrawing about $4.33 billion. However, they still have net assets worth $75.12 billion.
In a quick post on the CryptoQuant platform, analytics group XWIN Research Japan reported that years after spot bitcoin ETFs were approved in the US, investors and market participants have begun speculating which country might produce the next major ETF market, with Japan emerging as a likely candidate.
Regulatory reforms boost Japan Bitcoin ETF’s prospects
In a Quick post On June 3, XWIN analysts reported that Japanese regulators were first pushing reforms that would shift the jurisdiction of crypto assets from the framework of the Payment Service Law to the Financial Instruments and Exchanges Law, so that they can be recognized as investment products. Confidently, the experienced analyst asserted that these changes have gradually shifted the discussion from “if” to “when” the Bitcoin ETF will be approved.
If the regulatory reforms are successful, it is worth noting that there are about 2,350 trillion yen (US$14.66 trillion) in household financial assets and about 300 trillion yen (US$1.87 trillion) in investment funds. Based on adoption rates in other markets, the Japanese Bitcoin ETF could attract up to 900 billion yen ($5.61 billion) in a conservative scenario that assumes events develop relatively slowly.
In the most basic and likely scenario, deposits in the Japanese Bitcoin ETF could rise to about 1.4 trillion yen ($8.73 billion) at launch. In a bullish scenario that assumes strong growth, high investor interest, and very positive market conditions, the flow would likely rise to 3.1 trillion yen (US$19.34 billion) within its first year. He stated that at current prices, an inflow of 1.4 trillion yen would represent demand for approximately 140,000 bitcoins.
Finally, he added that the most immediate impact of the launch of the Japanese Bitcoin ETF goes beyond price appreciation. A spot Bitcoin ETF would allow investors to participate more easily, enable wealth managers to recommend Bitcoin exposure to clients, make institutional investors feel more comfortable investing, and give Bitcoin greater legitimacy in traditional finance.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is around $61,038, reflecting a 2.81% decline over the past 24 hours.
Featured image from Regtechtimes, chart from Tradingview
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