Japan's SBI Holdings Proposes Groundbreaking Bitcoin XRP Combined ETF Product
Japanese financial giant SBI Holdings announced plans to launch the country's first dual-asset cryptocurrency exchange-traded fund offering exposure to both Bitcoin and XRP. According to Cointelegraph, the company outlined two crypto-based ETF products in its earnings report Thursday.
The first proposal combines Bitcoin and XRP in a single investment vehicle planned for listing on the Tokyo Stock Exchange. The second product bundles gold-based ETFs with crypto-asset ETFs, allocating 51% to gold and 49% to cryptocurrency investments. SBI stated both products await regulatory approval from Japan's Financial Services Agency before launch.
CoinDesk reported the Crypto-Assets ETF would track both Bitcoin and XRP performance simultaneously, providing investors a single entry point for dual crypto exposure. The proposal represents a rare instance where XRP receives formal bundling with Bitcoin in an institutional-grade product.
Why This Development Matters for Investors
SBI's ETF filing comes as Japan prepares major cryptocurrency regulatory reforms that could reshape the investment landscape. The proposed changes would reclassify crypto assets as financial products under the Financial Instruments and Exchange Act, moving away from their current status as payment instruments.
This regulatory shift carries significant tax implications for investors. Brave New Coin reports Japan's FSA is considering reducing crypto taxes from the current 55% maximum rate to a flat 20% capital gains tax. Such changes would make crypto investing substantially more attractive to both retail and institutional participants.
We previously reported that several Asian countries are reassessing their crypto tax frameworks to remain competitive in the global digital asset market. Japan's potential 20% flat tax would align with traditional securities treatment and could trigger increased domestic crypto adoption. The country currently has over 12 million active crypto accounts holding more than 5 trillion yen in assets as of January 2025.
Broader Industry Impact and Market Implications
SBI's dual-asset ETF proposal could position Japan as a leader in cryptocurrency ETF innovation, particularly for XRP exposure. While Bitcoin ETFs have gained approval in multiple jurisdictions, XRP-based products face regulatory hurdles in many markets, including the United States.
The timing aligns with growing global momentum for XRP investment products. Market participants currently place 86% odds on SEC approval of spot XRP ETFs in the US, according to Polymarket data. CCN noted JPMorgan analysts predict XRP ETFs could attract up to $8 billion in institutional investments globally.
If approved, Japan's dual Bitcoin-XRP ETF would provide institutional investors unprecedented access to both cryptocurrencies through traditional brokerage accounts. This could accelerate mainstream adoption and legitimize XRP's role in institutional portfolios. However, some analysts caution that tighter financial regulations may create higher barriers to entry for smaller crypto companies, potentially concentrating market power among established financial institutions.
The success of SBI's ETF applications will likely influence other Japanese financial institutions and could set precedents for similar products across Asian markets. As Japan positions itself as a crypto-friendly jurisdiction through regulatory clarity and favorable tax treatment, other nations may follow similar approaches to attract digital asset businesses and investment capital.
