FISCO, a Japanese financial information provider, is looking to launch the first cryptocurrency fund in Japan, starting with a size of 300 million yen ($2.66 million) which will invest in bitcoin as well as other cryptocurrencies as early as January 2018.
The information provider already covers equity, foreign exchange, bond, and commodity markets so this would be the next logical step if they were looking to further diversify their investments. This move wouldn’t be their first dabble into cryptocurrency, as the Japanese firm already has an operational cryptocurrency exchange, allowing users to conduct transactions with no fee.
FISCO has also used this crypto exchange to issue Japan’s first Bitcoin-denominated bonds, which could potentially become a new way for fundraising business enterprises, similar to an ICO or TGE sale. They will use private resources, as well as raise capital from two other listed fintech companies.
Fisco aims for investment returns of 20 percent yearly, which is an excellent target for traditional assets but on the low side for cryptocurrency returns, considering how bitcoin can increase by that much in a couple days in a bull run.
In addition to profiting from price increases from cryptocurrencies, Fisco looks to arbitrage the price differences of cryptocurrencies on domestic and international exchanges.
With Japan being one of the more cryptocurrency-friendly countries, the funds should see immense attraction from investors and institutionalized traders looking to allocate funds in an asset that could potentially become the strongest portion of their portfolio.
With other cryptocurrency funds seeing great returns, like Peter Thiel’s Founders Fund which saw its fund become worth hundreds of millions of dollars thanks to Bitcoins stellar performance primarily in the last quarter of 2017, FISCO should see similar returns entering 2018.
At the time of writing, bitcoin is trading at around $14,000, and it looks like the market is currently favoring altcoins, which would make right now a prime time to enter and hold a long position for the cryptocurrency.