Japan may approve its first crypto exchange-traded funds as early as 2028, according to a Nikkei Asia report. The country’s Financial Services Agency plans to add cryptocurrencies to the list of approved ETF base assets. At the same time, regulators intend to apply stronger investor protection standards. Large domestic institutions are already preparing for listings on the Tokyo market.
Japan’s Financial Services Agency plans to revise ETF rules to include cryptocurrencies alongside traditional assets. These changes would align digital assets with existing exchange-traded products under clear oversight. The approach reflects Japan’s preference for gradual and rules-based market expansion.
Crypto ETFs previously faced a full ban in the country. Authorities later lifted that restriction as part of broader reforms to the crypto market. Since then, Japan has focused on clearer exchange supervision and stablecoin regulation.
Lawmakers still need to approve reforms between 2026 and 2027. Any delay could push the ETF timeline beyond 2028. Tax policy debates may also shape the pace of implementation.
Nomura Holdings and SBI Holdings are expected to launch Japan’s first crypto ETFs. The products would likely be listed on the Tokyo Stock Exchange. Both firms already operate across traditional and digital finance sectors.
The plan follows strong performance from US crypto ETFs. Spot bitcoin ETFs in the United States now hold $115.8 billion in net assets. That figure equals about 6.5 percent of bitcoin’s total market value.
US ETFs attracted pension funds, family offices, and university endowments. Investors include institutions such as Harvard. US regulators also simplified listing processes, encouraging filings tied to smaller digital assets.
Japan’s policy shift fits a broader regional trend. Hong Kong launched its own crypto ETFs in 2024. Those funds offer exposure to Bitcoin, Ether, and Solana through regulated vehicles.
Hong Kong’s ETFs allow in-kind subscriptions and redemptions. That structure lets investors exchange underlying assets directly for ETF shares. The design differs from US products but targets similar institutional demand.
South Korea also advances its framework through the proposed Digital Asset Basic Act. Lawmakers expect final legislation in the first quarter of this year. The law would support spot crypto ETFs and regulated stablecoins.
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Japan’s finance minister, Satsuki Katayama, described 2026 as the country’s first year of digital integration. Officials want financial institutions to support crypto alongside traditional assets. A KPMG Japan executive earlier suggested a bitcoin ETF would not arrive before 2027.
Estimates suggest Japan’s crypto ETFs could grow to one trillion yen, or about $6.4 billion, after launch. Meanwhile, pension funds and government-linked investors already add bitcoin to portfolios. Could regulated ETFs accelerate institutional demand once Japan opens that door?
Japan is preparing the legal and regulatory framework for crypto ETFs with a potential launch by 2028. Regulators plan stronger protections while major banks target Tokyo listings. The move follows U.S success and aligns with Asia’s broader digital asset push, signalling a gradual opening for institutional crypto access.