Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 68

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 68
---
Since 2020, the number of institutional investors who regard crypto assets as a meaningful investment class

has been expanding rapidly. In Japan, Nomura has entered into the crypto asset custody business and Mitsubishi UFJ

Trust announced in April 2025 that it plans to begin issuing a stablecoin. We anticipate that the infrastructure for

institutional investors in Japan that wish to conduct transactions in crypto assets will continue to improve over time.

In North America, beginning in 2021 with the ProShares Bitcoin Strategy ETF, there are now approximately 40

listed exchange-traded funds (ETFs) linked to Bitcoin or Ethereum, further confirming institutional adoption of

crypto assets as investment vehicles. In addition, traditional financial institutions such as Fidelity Investments and

BNY Mellon have both launched crypto custody platform businesses. We believe the entry of traditional

institutional investors supports the premise that crypto assets can form part of a diversified asset portfolio to be held

over the medium- to long-term.

The cryptocurrency markets, although they have been volatile, have grown significantly over time.

The total global market capitalization of crypto assets increased from approximately $1.1 billion to

approximately $2.67 trillion between June 30, 2013 and March 31, 2025, equivalent to a CAGR of over 90%.

The Japanese cryptocurrency market is a large and, we believe, underpenetrated market, representing a

compelling opportunity in Japan.

Japan’s domestic cryptocurrency market has had periods of strong transaction volume despite periods of

volatility. In March 2025, the cash-equivalent trading volume on domestic cryptocurrency exchanges, which

includes ours, was approximately ¥1.9 trillion. The below graph illustrates trends in the trading volume since 2019:

52

Source: Created by us based on public information made available by the JVCEA.

Potential for growth in the number of registered accounts.

According to the Japan Securities Dealers Association, the number of securities brokerage accounts held by

individuals in Japan was approximately 38 million as of March 31, 2025. However, according to the JVCEA, there

were only approximately 12.4 million accounts engaged in trading of crypto assets, including both spot transactions

and margin trading, as of March 31, 2025. We believe this shows real potential for growth in investment and trading

of crypto assets by Japanese individuals.

While Japan is the fourth largest global economy, only 10% of the Japanese population owns crypto assets

as of March