TL;DR
- Japan’s Financial Services Agency is working on a framework that would allow crypto ETFs from 2028, classified under the Investment Trust Act.
- Each ETF would require approval from the Tokyo Stock Exchange. The local market could reach a size of around 1 trillion yen, roughly $6.4 billion.
- SBI Holdings and Nomura Holdings are emerging as potential initial issuers. Japan is watching the precedent set by spot ETFs in the United States.
Japan’s Financial Services Agency is advancing a regulatory framework that would allow the approval of cryptocurrency ETFs in the domestic market starting in 2028, according to a report by Nikkei.
The regulator plans to classify crypto assets as specified assets under the Investment Trust Act, which would allow the launch of exchange-traded products linked to Bitcoin and other digital tokens within the traditional financial system.
A 1 Trillion Yen Market
If the framework is implemented, crypto ETFs would be available to retail investors through regulated vehicles. Each product would also require approval from the Tokyo Stock Exchange to be listed. Asset managers cited by Nikkei estimate that Japan’s crypto ETF market could reach a size of around 1 trillion yen, equivalent to about $6.4 billion.
The proposed timeline points to the framework and ETFs debuting in Japan in 2028, later than what Reuters recently reported, which had indicated a potential regulatory shift between 2026 and 2027 following parliamentary approval. The FSA has not issued any official comment.
Among major financial firms, SBI Holdings and Nomura Holdings are cited as candidates to launch the first products. In August, SBI filed an application for a dual-asset crypto ETF based on Bitcoin and XRP, a format rarely seen in institutional products. Nomura has also expressed interest in developing similar instruments.
Japan Watches the Success of Crypto ETFs in the United States
Japan’s market is looking to align with the growth of crypto ETFs in the United States. Spot Bitcoin ETFs began trading there in January 2024 and currently hold close to $116 billion in assets under management, according to SoSoValue data. Spot Ethereum ETFs, launched later, hold around $18 billion.
Japan’s Finance Minister, Satsuki Katayama, expressed support weeks ago for integrating crypto services into the country’s stock exchanges and described 2026 as the “digital year.” In her remarks, she referenced the role of crypto ETFs in the United States and their inclusion within regulated markets.
Currently, the total cryptocurrency market capitalization stands at around $3 trillion, after tripling over the past three years. Pension funds, universities, and government-linked entities have already added Bitcoin ETFs to their portfolios. In Japan, the potential arrival of these products would channel local demand through exchange-traded instruments under regulatory oversight
