Japanese financial conglomerate SBI Holdings has launched the country’s first cryptocurrency fund that consists of seven different digital currencies.
The fund includes cryptocurrency staples such as bitcoin, ethereum, xrp, litecoin, bitcoin cash, chainlink, and polkadot.
SBI Holdings particularly emphasized the diversification benefits of the cryptocurrency fund, rather than its speculative qualities. As such, SBI’s digital asset unit aims for investors who understand risks associated with cryptocurrency volatility.
Due to these risks, the fund – dubbed SBI Alternative Fund GK – requires a minimum investment of a minimum of roughly 1-3 million yen ($9,000-$27,000).
Effectively, the new investment vehicle represents a partnership agreement between the fund investors and the SBI fund as the custodial manager of their crypto assets.
“If profits are obtained from the operation, the amount after deducting various expenses will be distributed to the customer. However, the distribution of profits is not fixed, and if a loss occurs due to operations, etc., the principal of the investment may be damaged and a loss may be incurred. This product cannot be canceled halfway for one year (February 1, 2022 to January 31, 2023). This product is an investment of 5 million yen or more in units of 1 million yen. For individual investors, the amount equivalent to profits is treated as miscellaneous income, and as a general rule, it is necessary to file a final tax return,” the statement further reads.
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SBI formulates a unique approach
Japan’s biggest online brokerage has been providing its global clients with cryptocurrency trading services since 2018. However, it took nearly five years to establish “Japan’s first cryptocurrency fund for general investors,” largely because of the county’s tightening restrictions over cryptocurrency investing.
Tokyo’s Financial Service Agency…
