Cryptocurrency Bitcoin Approaches $120,000 again amidst the launch of Bitcoin-dedicated banks by El Salvador
In the world of cryptocurrency, the landscape is continually evolving, and three major economies—the United States, Japan, and El Salvador—are leading the charge.
El Salvador's Bitcoin Adoption
El Salvador has taken a unique approach to cryptocurrency, passing a law that allows regulated investment banks to operate entirely as Bitcoin banks. This move aims to attract foreign capital and establish the country as a crypto finance hub. Notably, these banks cater exclusively to sophisticated investors, requiring a Digital Asset Service Provider license and at least $50 million in starting capital.
Japan's Regulatory Preparations
In contrast, Japan is still in the regulatory preparatory phase for Bitcoin ETFs. Major financial firm SBI Holdings has expressed strong interest and plans to launch crypto ETFs that include Bitcoin and XRP upon regulatory approval. However, as of August 2025, no applications have been formally submitted due to pending regulatory approvals under Japan’s Financial Instruments and Exchange Act (FIEA) and awaiting Japan’s Financial Services Agency (FSA) to finalize crypto regulations expected by early 2026.
The Mature US Market
The United States, on the other hand, has a more mature Bitcoin ETF market. Several Bitcoin ETFs have been approved, with the U.S. Securities and Exchange Commission (SEC) recently considering spot Bitcoin ETFs. Regulatory clarity is more advanced in the U.S. compared to Japan.
Harvard University's Bitcoin Investment
Meanwhile, Harvard University has allocated a significant portion of its funds towards Bitcoin. The institution has invested $116.6 million into BlackRock's IBIT spot Bitcoin ETF, making Bitcoin the fifth-largest holding in Harvard's equity portfolio. This investment aligns with trends in the U.S., as US spot Bitcoin ETFs have attracted over $54 billion in inflows since their launch in early 2024.
Bitcoin's Current Status
At the time of writing, Bitcoin is trading at $118,320, up by 4% in the past seven days. The cryptocurrency is approaching the $120,000 milestone again. Tightening liquidity on major exchanges is contributing to an increase in bullish sentiment surrounding Bitcoin.
Critics' Concerns
However, not everyone is optimistic about El Salvador's Bitcoin adoption. Critics suggest that the benefits may mainly favor wealthy institutions over everyday Salvadorans.
SBI Holdings' Plans
Despite the current regulatory hurdles, SBI Holdings in Japan is preparing to launch crypto-asset-linked investment trusts and ETFs once regulatory approval is granted. The firm's aim is to cater to retail investors and maintain high regulatory standards.
[1] Financial Times [2] Bloomberg [3] CoinDesk [4] The Wall Street Journal [5] Reuters
- In the evolving landscape of Bitcoin and altcoins, three significant economies—El Salvador, Japan, and the United States—are shaping the future of cryptocurrency as a banking and investment asset.
- El Salvador's unique approach to Bitcoin finance is attracting foreign capital by allowing regulated investment banks to operate solely as Bitcoin banks, catering to sophisticated investors.
- Japan, in its regulatory preparatory phase, is awaiting approval for Bitcoin ETFs, with SBI Holdings expressing interest in launching crypto ETFs including Bitcoin and XRP.
- The United States boasts a mature Bitcoin ETF market, with several approved Bitcoin ETFs, and the SEC considering spot Bitcoin ETFs.
- Institutions like Harvard University have made significant investments into Bitcoin, allocating funds towards BlackRock's IBIT spot Bitcoin ETF, making it the fifth-largest holding in Harvard's equity portfolio.
- As of writing, Bitcoin is trading at $118,320, with a 4% increase in the past week, approaching the $120,000 milestone. Tightening liquidity on major exchanges contributes to bullish sentiment.
- Critics question the fairness of El Salvador's Bitcoin adoption, suggesting it may primarily benefit wealthy institutions over everyday Salvadorans.
- Despite regulatory hurdles, SBI Holdings in Japan plans to launch crypto-asset-linked investment trusts and ETFs, aiming to cater to retail investors while maintaining high regulatory standards.
