Historic BOJ ETF Unwind Sparks Risk-Off in Stocks and Crypto
The Bank of Japan’s announcement of a gradual $250 billion ETF and JREIT unwind sent ripples through markets on Friday, pushing Bitcoin below $116,500 after it briefly neared $118,000.
Under the plan, the BOJ will sell ETFs worth ¥330 billion ($2.2 billion) annually at book value, or ¥620 billion ($4.2 billion) at market prices. Governor Kazuo Ueda stressed the pace would be deliberately slow, taking more than a century to complete.
While the BOJ held its benchmark rate at 0.5%, two dissenting members signaled a potential hike as soon as October. With Japan’s debt-to-GDP ratio near 240% and bond yields at multi-decade highs, analysts warn that rising borrowing costs could strain fiscal sustainability.
