Japan Eyes Crypto ETFs as Regulator Floats 2028 Timeline

• Japan’s financial regulator is considering rule changes that could allow crypto ETFs, with 2028 discussed as a possible early target rather than a confirmed timeline.
• Major financial groups such as Nomura and SBI are expected to lead issuance if approval is granted, offering regulated access for retail investors.
• Comparisons with the US highlight the scale of overseas crypto ETF adoption, while domestic policy changes remain under consultation.

Japan may move towards permitting cryptocurrency exchange-traded funds (ETFs) under a revised regulatory framework, potentially as early as 2028. Nikkei said the Financial Services Agency is considering changes that would classify cryptocurrencies as eligible ETF assets while strengthening investor safeguards. The regulator has not confirmed a schedule, and the discussions are described as preparatory rather than decisive.

Industry participation is expected to come from established financial institutions rather than new entrants. Nomura Holdings and SBI Holdings were identified as likely early issuers of crypto-linked ETFs should approval be granted. The proposed products would allow Japanese retail investors to access cryptocurrencies such as Bitcoin through regulated investment channels.

Under current policy settings, crypto ETFs remain prohibited due to restrictions on permissible ETF assets. Although Japan has adjusted aspects of its crypto regulation in recent years, direct exposure through ETFs remains excluded. Any approval would follow formal consultations and amendments to existing rules.

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US Crypto ETFs Set a Global Benchmark

Nikkei projected that crypto ETFs in Japan could eventually reach ¥1 trillion (AU$9.38 billion) in assets, depending on investor demand and market conditions. In the United States, spot Bitcoin ETFs have accumulated US$115.8 billion (AU$167.46 billion) in net assets since approval, according to Nikkei Asia. Those products have attracted institutional capital from pension funds, family offices and university endowments.

SBI Holdings disclosed plans on 6 August 2025 to launch a Bitcoin-XRP dual ETF and a gold-crypto ETF structure, subject to regulatory approval. On 5 January, Finance Minister Satsuki Katayama said, “In the US, crypto assets are increasingly used via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives”.

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