December 26, 2024
By Our Correspondent
The Chief Executive Officer of Daiwa Securities advocates for the introduction of cryptocurrency exchange-traded funds (ETFs) in the Japanese market. Daiwa is among several firms actively seeking the approval of crypto ETFs in Japan.
In an interview reported by Bloomberg on December 24, Akihiko Ogino, the CEO of Japan’s second-largest brokerage, expressed that Japan should permit the launch of crypto ETFs within the country. Currently, Daiwa offers an index-based exchange-traded fund in the Japanese market, known as the Daiwa ETF Nikkei 225. However, Ogino did not disclose any intentions for Daiwa to initiate the filing of its own crypto-backed ETF.
Daiwa is not alone in its efforts; last October, prominent Japanese financial institutions, including Mitsubishi UFJ, Sumitomo Mitsui, and Nomura Securities, supported a proposal urging the Japanese government to prioritize Bitcoin and Ethereum for crypto-backed ETFs.
Many experts contend that Japan faces significant challenges in adopting crypto-backed ETFs, primarily due to existing regulatory limitations and a prevailing negative sentiment towards cryptocurrencies, influenced by past events such as the Mt. Gox incident and issues with DMM. Furthermore, Ogino has forecasted that the Bank of Japan is likely to implement stricter monetary policies as corporate profits rise alongside early inflation indicators. Daiwa anticipates that the Bank of Japan will raise the policy interest rate by 25 basis points in January of the upcoming year, increasing it from 0.25% to 0.5%. The brokerage also predicts a further increase to 0.75% by the end of 2025.
Ogino has inferred that the Bank of Japan’s reduction in government bond purchases will lead to an increase in the volume of bonds available in the market, which is expected to enhance trading activity. Currently, Daiwa is experiencing difficulties in achieving profitability within the Chinese market. Ogino expressed uncertainty regarding the brokerage’s ability to generate profits in the forthcoming year, prompting the firm to consider strategies for profitability in 2026 instead. He remarked that the performance of the Chinese market over the past year has not met expectations.
Official statistics indicate that the total revenue of securities firms in China declined by 9%, amounting to 203.3 billion yuan ($27.9 billion) in the first half of the year compared to the previous year. Additionally, the company announced plans to increase employee wages by approximately 5% or more in April 2025. The CEO emphasized the firm’s commitment to “appropriately grow and train” its current workforce to effectively trade in yen rates, thereby minimizing the need for new hires.