Financial services provider SBI group rolls out a crypto fund in Japan


TL;DR Breakdown

  • SBI Group, a financial services firm in Tokyo, announced the launch of a crypto program that involves seven assets.
  • The fund will feature BTC, ETH, XRP, LTC, BCH, LINK, and DOT.

SBI Group, a financial services provider in Japan, has launched a crypto fund that will feature seven different coins. The company said that it is the first open crypto fund there. However, it also warned investors that cryptocurrencies are high-risk assets before staking in them.

SBI Group offers a collection of star-studded cryptocurrencies to their users to reduce the risks involved in these investments. The company said that its clients should register for these services until the last day of next January.

SBI group launches a crypto fund that involves seven cryptos

SBI holdings, which many refer to as SBI group, revealed its plans to launch a crypto fund to help clients interact with these assets safely. They first said that they would implement this project earlier in the year. 

In that announcement, the group aimed to roll out the project in November 2021. However, they postponed it to December 17, 2021. They made these announcements through a press release and another more detailed publication regarding the project.

The firm said they would manage the fund under SBI Alternative Fund GK. Their latest press release also says they may rebalance the assets later. They added that the current ratio of all coins in that fund is 20% or below. They also revealed that their contract only covers activities spanning February 1, 2022, to January 31, 2023

The SBI fund aims to cut the investment risks through time diversification

SBI group has been showing interest in investing in cryptocurrencies for quite some time now. The firm has forged partnerships with organizations like Ripple and Boerse Stuttgart. It has also purchased the UK crypto services provider B2C2. However, their efforts towards forging a newer and bigger partnership for crypto activities have slowed down due to Japan’s tighter crypto regulation rules.

According to their press release, the initial trading of these assets will require about three months for each buying and selling transaction to mature. The company is introducing this functionality to counteract the short time market variations by increasing the investment periods. The publication also said that there would be a monthly auto-rebalancing of the investment ratios.

The new fund also has a separate portal to make it easier and less confusing to the users who access its website. The press release from December 17, 2021, also revealed plans to deal with the upcoming BTC Futures ETFs. It also mentioned the ongoing NFT craze, even though it did not shed much light on the matter. 

SBI is not the only institution that is getting involved in crypto adoption. Other institutions like banks and large business organizations also adopt cryptos differently. Recently, a report said that Shiba Inu is acceptable as payment in over 2 million hotels. Some banks like Goldman Sachs are also planning on introducing the use of BTC as collateral for loans. These developments are encouraging. However, what will become cryptos amid regulatory rumors remains to be seen.