Metaplanet Rejects ETF Competition, Defends Active Bitcoin Strategy

Metaplanet CEO Simon Gerovich has dismissed claims that U.S. Bitcoin ETFs will weaken the company’s strategy. He said the comparison is inaccurate and misunderstands what the firm is trying to build. His comments come as online discussions question whether institutional ETF inflows could overshadow Metaplanet’s approach to Bitcoin exposure.

Gerovich Defends Active Bitcoin Model Over Passive ETFs

Gerovich explained that Bitcoin ETFs are passive vehicles. They do not increase their Bitcoin holdings unless new capital flows into the fund. He said ETFs offer fixed exposure and do not actively expand underlying assets. The CEO stressed that Metaplanet operates differently because it is a business, not a financial product.

The firm generates revenue and reinvests profits to grow its Bitcoin position. Also, it raises funds for its BTC purchases. Recently, Metaplanet aimed to purchase more BTC by raising nearly $1.4 billion through its international share offering.

The company’s strategy centers on increasing the amount of Bitcoin held per share rather than simply tracking Bitcoin price. Gerovich described Metaplanet as an expanding exposure model backed by a business foundation, while ETFs remain static exposure products. Each structure serves a different role in the market.

Gerovich responded to the debate by repeating that ETFs and Metaplanet are not rivals. He said the firm intends to keep growing its reserves and improving Bitcoin exposure per share. According to him, ETFs do not reduce the company’s strength or competitive advantage.

Japan’s Crypto Shift Boosts Spotlight on Metaplanet

Several Japanese investors raised questions online about whether ETF approval could “reverse the wind” for Metaplanet. One user asked what the company plans to do with its accumulated Bitcoin. Another user pointed out that Bitcoin remains Bitcoin regardless of where it is held, and the difference lies in how it is used.

The discussion arose because Japan is initiating the shift towards the classification of crypto assets as financial products. According to a newspaper article, the tax on crypto gains would reduce to 20% under the tax changes. It was previously 55%.

These reduced tax rates might accelerate the institutional adoption and make the stocks of companies accumulating Bitcoin more attractive to investors. Gerovich-led Metaplanet has been attracting attention following the company’s first BTC purchase in April 2024. After a one month pause, Metaplanet announced plans to resume Bitcoin purchase by raising $100 million.

Its style of approach mirrors that of Michael Saylor-led Strategy, the number one corporate holder of BTC. Metaplanet is among the few publicly traded Japanese companies which purchase Bitcoin as a strategic asset.