Cryptocurrency ETFs Could Launch in Japan by 2028 Under New Regulatory Framework: Report
Financial authorities in Japan are considering regulatory reforms that would enable cryptocurrency assets to be included in exchange-traded funds, potentially opening new pathways for retail investors.
Financial authorities in Japan are considering potential regulatory reforms that could open the door for exchange-traded funds (ETFs) backed by cryptocurrency, with domestic news sources indicating that 2028 is under consideration as a potential launch timeframe.
Based on reporting from Nikkei, which referenced sources with knowledge of the discussions, the Financial Services Agency of Japan intends to modify its current regulatory structure to permit cryptocurrency to qualify as acceptable assets for ETFs, accompanied by enhanced safeguards for investors.
Leading financial institutions, such as SBI Holdings and Nomura Holdings, are reportedly positioned among the initial companies likely to introduce ETF products linked to cryptocurrency, according to the Nikkei report.
Should these modifications come to fruition, they would reduce obstacles for retail investors in Japan seeking regulated access to Bitcoin (BTC) and additional digital currencies via conventional brokerage platforms. The regulatory shift would also align Japan more closely with jurisdictions such as Hong Kong and the United States, both of which granted approval for spot cryptocurrency ETFs during 2024.
Japan sends another policy signal, not an approval
These ongoing discussions represent regulatory consideration rather than a completed policy transformation. The FSA has yet to publicly verify any specific timeline, and implementing such changes would probably necessitate official consultation processes and amendments before cryptocurrency ETFs could receive authorization under Japan's current regulatory structure.
Currently, at the time of publication, cryptocurrency ETFs are not accessible in Japan because existing regulations limit which assets are eligible for ETF inclusion. Although the regulatory body has continued to refine its stance toward cryptocurrency, ETFs with direct ties to digital currencies have thus far remained excluded from the approved framework.
According to Nikkei's projections, cryptocurrency ETFs in Japan could potentially accumulate assets totaling 1 trillion yen, approximately equivalent to $6.4 billion. These projections are, however, tentative and contingent upon finalized regulatory frameworks, investor appetite and prevailing market dynamics.
Industry positioning already underway
SBI Holdings has already communicated its intentions to introduce a cryptocurrency ETF in the Japanese market. On Aug. 6, 2025, the financial group disclosed plans for launching a dual Bitcoin-XRP ETF alongside a hybrid gold-crypto ETF product.
During that announcement, SBI indicated that conversations with regulatory authorities were in progress and emphasized that these initiatives were contingent upon receiving regulatory authorization.
On Jan. 5, Japan delivered an unambiguous welcoming message toward digital currencies through statements made by Finance Minister Satsuki Katayama. During her address, Katayama emphasized that Japan needs to advance sophisticated fintech programs, referencing the use of ETFs as protection against inflation in the US.
In the US, crypto assets are increasingly used via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives.
Satsuki Katayama, Finance Minister of Japan