Bitrabo Editorial
An upcoming joint venture between SBI Holdings and Franklin Templeton, as reported by Nikkei, seeks to explore the investment landscape for spot Bitcoin ETFs in Japan, potentially paving the way for a spot XRP Exchange Traded Fund (ETF) in the US.
Franklin Templeton, a renowned US investment management firm, will hold a 49% stake in the joint company, with SBI Holdings owning the majority share of 51%. This partnership comes amid a growing interest in spot BTC ETFs, following the SEC’s approval of 11 Bitcoin-focused ETFs earlier this year.
Japanese investors could benefit from tax advantages if Bitcoin ETFs are traded on the domestic securities market, where spot Bitcoin ETFs would be subject to a lower tax rate compared to physical Bitcoin, potentially resulting in reduced tax burdens for investors.
Potential for a Spot XRP ETF
The alliance between SBI Holdings and Ripple Labs points towards a possible spot XRP ETF in the future. SBI Holdings, known for its support of Ripple’s technology, has been actively promoting Ripple’s blockchain solutions in Asia through SBI Ripple Asia since 2016.
With SBI Holdings’ strong advocacy for XRP and Ripple’s technology, there might be a pathway for a spot XRP ETF in the future, especially considering the successful approvals of spot Bitcoin and Ethereum ETFs in the US. The relationship between SBI Holdings and Ripple Labs could play a crucial role in the potential launch of a spot XRP ETF.
While the recent joint venture announcement does not explicitly mention a spot XRP ETF, SBI Holdings’ history with Ripple Labs and the evolving ETF landscape suggest a possible future development in this direction. The introduction of a spot XRP ETF could offer investors another avenue in the cryptocurrency market.
As of now, XRP is trading at $0.6137.