The acquisition could be another step towards the first spot crypto ETF launching in Japanese markets.

BitfFlyer Holdings has acquired FTX Japan and plans to launch potential crypto-based exchange-traded funds (ETFs).

BitFlyer has completed the acquisition of 100% of FTX Japan’s outstanding shares, making it its wholly-owned subsidiary.

The new business plans to provide crypto custody solutions for institutional investors, wrote Yuzo Kano, the CEO of BitFlyer Holdings, in a July 26 X post.

“A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF's backing asset. Through our custody business, we aim to become a public service that serves as an industry infrastructure.”

FTX Japan was part of the infamous FTX exchange, once the world’s second-largest crypto exchange by trading volume, that collapsed in November 2022, causing at least $8.9 billion in lost user funds.