Nikolas Sargeant
Japan's financial regulator is considering rule changes that could authorize cryptocurrency exchange-traded funds, with 2028 emerging as a potential early implementation target according to local media reports citing people familiar with regulatory discussions.
According to Nikkei, Japan's Financial Services Agency plans to amend its regulatory framework to include cryptocurrency as eligible ETF assets alongside stronger investor-protection mechanisms. The proposed changes would represent a significant shift in Japan's approach to regulated digital asset products available through traditional financial channels.
Major financial groups including Nomura Holdings and SBI Holdings are among the first companies expected to develop crypto-linked ETF products if regulatory approval proceeds, Nikkei reported. The development timeline suggests Japanese institutions are positioning for market entry pending formal regulatory clearance.
If implemented, the changes would lower barriers for Japanese retail investors seeking regulated exposure to Bitcoin and other digital assets through traditional brokerage accounts. The framework would bring Japan closer to markets like the United States and Hong Kong, which approved spot cryptocurrency ETFs in 2024, creating competitive pressure on Japanese regulators to enable similar products.
The discussions reflect regulatory intent rather than finalized policy. The FSA has not publicly confirmed a timeline, and any changes would likely require formal consultations and revisions before cryptocurrency ETFs could be approved under Japan's existing regulatory structure.
Cryptocurrency ETFs remain unavailable in Japan under current policies restricting ETF-eligible assets. While the regulator has refined its approach to cryptocurrency oversight in recent years, ETFs tied directly to digital assets have remained outside the approved framework, limiting retail access to regulated products.
Nikkei estimated Japanese crypto ETFs could eventually reach 1 trillion yen, approximately $6.4 billion, in assets under management. However, the projections are speculative and depend on market conditions, investor demand, and finalized regulations that have not yet been established.
SBI Holdings has previously outlined plans to launch cryptocurrency ETFs in Japan. On August 6, 2025, the company revealed proposals for a Bitcoin-XRP dual ETF and a gold-crypto ETF structure. SBI stated discussions with authorities were ongoing and plans depended on regulatory approval.
On January 5, Japan sent supportive signals toward digital assets through remarks by Finance Minister Satsuki Katayama. In a speech, Katayama stated Japan must pursue advanced fintech initiatives, citing cryptocurrency ETFs being used as inflation hedges in the United States.
"In the US, crypto assets are increasingly used via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives," Katayama said in an English translation of the speech, indicating government-level support for expanding digital asset investment options.
