Daiwa Securities CEO Calls for Approval of Crypto ETFs in Japan
The CEO of Daiwa Securities, Akihiko Ogino, has urged Japanese authorities to permit the launch of crypto exchange-traded funds (ETFs) in Japan. Daiwa and other firms are advocating for the approval of crypto ETFs, emphasizing the need for investment trusts backed by cryptocurrencies.
In a Bloomberg report, Ogino highlighted that major firms like Mitsubishi UFJ, Sumitomo Mitsui, and Nomura Securities support prioritizing Bitcoin and Ethereum for crypto ETFs. However, regulatory challenges and negative perceptions stemming from past incidents such as Mt. Gox and DMM hinder the adoption of crypto-backed ETFs in Japan.
Challenges in China and Uncertain Profitability
Ogino addressed the uncertain profitability of Daiwa's operations in China, noting a shift from previous optimism regarding their joint venture brokerage. He stated that the Chinese market's performance has not met expectations, leading to doubts about profitability in 2025. Official data indicates a 9% drop in revenue for China's securities firms in the first half of the year, prompting some firms, including BNP Paribas and Morgan Stanley, to reduce staff.
“It’s a bit questionable whether we will be able to make a profit in 2025. The reality is that the pace of the Chinese market over the past year hasn’t been as good as expected.”
Ogino emphasized Daiwa's commitment to achieving profitability by 2026 through securing partnerships with investment funds and attracting more businesses.
Daiwa’s Growth Plans Amid Japan’s Economic Shifts
Beyond advocating for crypto ETFs, Ogino discussed Japan's economic outlook, suggesting further monetary tightening by the central bank as corporate profits rise alongside mild inflation. He anticipates that the Bank of Japan will increase its policy interest rate to 0.5% in January and further to 0.75% by the end of 2025.
Daiwa plans to enhance employee training for skilled trading in yen rates and aims to raise salaries by approximately 5% or more in April 2025, marking the fourth consecutive year of pay increases.