Ripple partner SBI Holdings is teaming up with Franklin Templeton to establish a joint venture by the end of 2024 to explore the investment environment for spot Bitcoin ETFs in Japan. This move has reignited talks about the potential introduction of a spot XRP ETF. SBI Holdings and Franklin Templeton are working towards addressing the growing interest in spot Bitcoin ETFs across the globe, aiming to provide Japanese investors with major tax advantages.
Franklin Templeton, a renowned name in the mutual fund and ETF industry, will own 49% of the new company, while SBI Holdings will hold the majority stake of 51%. The partnership aims to tap into the success of the Bitcoin investment product in the US and bring similar benefits to Japanese investors. Currently, owning physical Bitcoin in Japan can lead to a substantial 55% capital gains tax, whereas the spot Bitcoin ETFs are subject to only 20.315% on capital gains, resulting in smaller tax bills for investors.
The alliance between SBI Holdings and Franklin Templeton has sparked discussions about the possibility of introducing a spot XRP ETF in the future. SBI Holdings has been a long-time supporter of Ripple and has played a crucial role in promoting Ripple’s blockchain technology in Asia through collaborations like SBI Ripple Asia. The partnership focuses on enhancing cross-border payment systems using Ripple’s technology, with SBI Holdings recognizing the potential of the XRP token in facilitating efficient international transactions.
The deep-rooted relationship between SBI Holdings and Ripple strengthens the case for introducing an XRP ETF in Japan, given the success and support Ripple has received in the region. While there have been concerns about liquidity issues for certain cryptocurrencies like XRP in the US market, SBI Holdings remains optimistic about the prospects of an XRP ETF in Japan, especially once the Ripple vs. SEC lawsuit is settled. Ripple’s native cryptocurrency XRP is currently trading at $0.60 with a market cap of $33.675 billion, with market analysts predicting targets of $20 and beyond for the digital asset.
In conclusion, the partnership between SBI Holdings and Franklin Templeton to explore spot Bitcoin ETFs in Japan has opened up possibilities for the introduction of a spot XRP ETF in the future. With SBI Holdings’ strong support for Ripple and its technology, the potential for an XRP ETF in Japan looks promising. As the market continues to evolve and embrace cryptocurrency investment products, Japanese investors could soon benefit from the tax advantages and convenience offered by these ETFs. Stay tuned for more updates on the development of spot XRP ETF and the burgeoning crypto market in Japan.
