Goldman Sachs stated that when the Bank of Japan decides to gradually reduce its holdings of ETFs in the future, it will choose to sell these ETFs gradually in the market, rather than transferring them to the government as some have suggested. Since 2010, as part of its ultra-loose monetary policy to revive the sluggish economy, the Bank of Japan has been purchasing ETFs, a practice that has continued for 13 years. Although the Bank of Japan stopped purchasing ETFs last year, it has not yet announced when and how it will dispose of its holdings of approximately 37 trillion yen (about 252 billion USD) in ETF assets, which have a market value of around 70 trillion yen. The Bank of Japan has stated that its decision to reduce these assets will be based on three principles: selling at an appropriate price, avoiding losses for the central bank, and minimizing market disruption. Goldman Sachs noted that a way to meet these three conditions could be to gradually sell small amounts on the open market.

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