TL;DR
- Japan is moving toward legalizing cryptocurrency ETFs, as recently announced by Finance Minister Satsuki Katayama.
- Japan’s House of Representatives approved transferring crypto oversight to the FIEA, placing these assets on par with traditional stocks and bonds.
- SBI Holdings proposed a dual Bitcoin and XRP ETF with a target of ¥5 trillion (~$32 billion) in assets under management within three years.
The Japanese government announced that it is on track to legalize cryptocurrency ETFs within the country. Finance Minister Satsuki Katayama made the announcement during the “Open QUICK 2026” seminar, organized by the financial information service QUICK.
The official noted that the initiative is a direct response to the success these products have had in international markets, and that the first products could make their exchange debut as early as next year.
A Legal Framework That Changes the Entire Market Structure
The regulatory foundation has been crucial. Japan’s House of Representatives recently approved a legislative revision that transfers oversight of spot cryptocurrencies from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA). This change elevates crypto assets to the category of fully regulated “financial products”, meaning they will receive the same legal treatment as stocks and traditional bonds. This represents a structural transformation in the country’s approach to digital assets, one that will formally open the door to the creation of new regulated investment vehicles.
SBI Holdings Racing for the First ETF
Meanwhile, financial giant SBI Holdings has taken the lead. In May, the company filed plans with regulators to launch a dual ETF combining exposure to Bitcoin and XRP in a single product. SBI also proposed a hybrid trust allocating 51% to gold-based ETFs and 49% to crypto asset ETFs, designed to attract both conservative institutional investors and retail investors.
The target set by SBI is considerably ambitious: the firm aims to capture approximately ¥5 trillion —around $32 billion— in assets under management within three years of its launch.
The company seeks to secure a strong first-mover advantage ahead of other major Japanese financial groups, such as Nomura and Rakuten Securities, which could also enter the market. SBI, which also maintains one of the longest institutional relationships with Ripple —the company behind XRP—, could prove to be the most active player in the new era of Japan’s crypto market.
