Japan Eyes Crypto ETF Approval as Early as 2028

Japanese financial regulators are considering easing restrictions on cryptocurrency exchange-traded funds (ETFs).

Sources familiar with the matter said 2028 could be the earliest timeline for approval, following billion-dollar inflows into U.S. Bitcoin BTC $87 672 24h volatility: 1.1% Market cap: $1.75 T Vol. 24h: $53.19 B and Ethereum ETH $2 897 24h volatility: 1.3% Market cap: $349.66 B Vol. 24h: $32.64 B ETFs in 2025.

Japan Reviews Rules for Crypto ETF Approval

According to Nikkei, citing people familiar with the matter, Japan’s Financial Services Agency (FSA) is planning to amend its regulatory framework to allow cryptocurrencies to be treated as eligible ETF assets.

With institutional interest in digital assets continuing to grow, regulators are increasingly reviewing whether existing crypto-related restrictions should be relaxed.

Country’s top financial groups such as SBI Holdings and Nomura Holdings will be the first to explore crypto ETFs.

Major players are positioning themselves ahead of an anticipated policy shift from regulators.

Earlier in January, Japanese Finance Minister Satsuki Katayama said the government supports cryptocurrency trading through regulated stock and commodity exchanges.

If implemented, the reforms would lower barriers for Japanese retail investors seeking regulated exposure to Bitcoin and other digital assets through traditional brokerage accounts.

The move would also bring Japan closer in line with markets such as the United States and Hong Kong, which approved spot crypto ETFs in 2024.

Shift in Regulatory Outlook

The ongoing discussions reflect regulatory intent rather than a finalized policy decision.

Japan’s Financial Services Agency (FSA) has not confirmed any timeline, and any change would require regulatory amendments and formal public consultations.

While regulators continue to refine their broader approach to digital assets, spot crypto ETFs remain outside the current framework.

Nikkei estimates that Japan’s crypto ETF market could eventually reach around 1 trillion yen, or roughly $6.4 billion.

By comparison, the U.S. market has already surpassed $150 billion in assets under management.

SBI Holdings has previously expressed interest in launching a crypto ETF in Japan.

On August 6, 2025, the firm disclosed plans for a Bitcoin-XRP dual ETF and a gold-crypto product, noting that any launch would depend on regulatory approval.

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