The CEO of Daiwa Securities, Akihiko Ogino, is advocating for Japan to allow crypto exchange-traded funds (ETFs) to enter the local market. In a recent interview, Ogino expressed his belief that Japan should permit the debut of crypto-backed ETFs in the country. Daiwa, the second largest brokerage in Japan, already offers an index-based ETF called Daiwa ETF Nikkei 225, but has not disclosed any plans for a crypto-backed ETF of its own.
Daiwa is not alone in its stance on crypto ETFs, as major Japanese financial firms such as Mitsubishi UFJ, Sumitomo Mitsui, and Nomura securities have all supported a proposal urging the government to prioritize Bitcoin and Ethereum for crypto-backed ETFs. Despite this growing interest, there are still challenges ahead. Japan’s regulatory constraints and negative perception towards crypto, fueled by incidents like the Mt. Gox and DMM hacks, make it difficult for the country to fully embrace crypto-backed ETFs.
In addition to the push for crypto ETFs, Ogino made predictions about Japan’s central bank tightening monetary policies as corporate profits rise and signs of inflation emerge. Daiwa expects the Bank of Japan to raise its policy interest rate by 25 basis points in January 2022, with another increase to follow by the end of 2025. Ogino also noted that the central bank’s reduction of Japanese government debt purchases could lead to increased bond availability in the market, stimulating trading activity.
While Daiwa is optimistic about the future of Japan’s monetary policies, the firm is facing challenges in its China market. Ogino expressed doubts about Daiwa’s profitability in the coming year, citing the slower-than-expected pace of the Chinese market over the past year. Despite this, the company is exploring strategies to turn a profit in 2026, including plans to raise employee wages by around 5% in April 2025. The firm aims to grow and train existing staff to successfully trade in yen rates, without the need to hire new recruits.
Overall, Daiwa Securities is advocating for the approval of crypto ETFs in Japan, alongside other major financial firms. Despite regulatory constraints and negative perceptions towards crypto, there is a growing interest in introducing Bitcoin and Ethereum-backed ETFs in the country. In addition to these efforts, Daiwa is preparing for potential monetary policy changes in Japan while navigating challenges in its China market. By focusing on employee training and growth strategies, the firm aims to overcome obstacles and achieve profitability in the years ahead.
