Japan’s financial regulator is considering potential rule changes that could pave the way for cryptocurrency trading funds (ETFs), with local media reporting that 2028 is being discussed as an early target.
According to Japan’s Financial Services Agency plans to change its regulatory framework to allow the inclusion of cryptocurrencies in eligible ETF assets along with stronger investor protection mechanisms, according to a Nikkei report citing people familiar with the matter.
Nikkei reported that major financial groups including Nomura Holdings and SBI Holdings are among the first companies expected to develop cryptocurrency-linked ETF products.
If implemented, the changes would lower barriers for Japanese retail investors seeking regulated exposure to Bitcoin (BTC) and other digital assets through established brokerage accounts. The move would also bring Japan closer to markets like the United States and Hong Kong, which approved spot cryptocurrency ETFs in 2024.
Japan is sending another political signal, not consent
Discussions reflect regulatory intent, not ultimate policy change. The FSA has not publicly confirmed the timeline, and any changes would likely require formal consultations and amendments before cryptocurrency ETFs could be approved under current Japanese regulations.
At the time of writing, cryptocurrency ETFs remain unavailable in Japan due to current rules limiting assets eligible for ETFs. While the regulator has refined its approach to cryptocurrencies, ETFs linked directly to digital assets have so far remained outside this framework.
Nikkei estimated that Japanese cryptocurrency ETFs could eventually reach 1 trillion yen in assets, or about $6.4 billion. However, the estimates are speculative and depend on market conditions, investor demand and final regulations.
Related: Japan’s finance minister endorses exchanges as a gateway to digital assets
Industry positioning is already underway
SBI Holdings had earlier outlined plans to launch a cryptocurrency ETF in Japan. On August 6, 2025, the company revealed plans to launch a dual Bitcoin-XRP ETF and a gold-crypto ETF structure.
At the time, SBI said talks were ongoing with authorities and that the plans were subject to regulatory approval.
On January 5, Japan sent a clear welcome signal to digital assets through remarks by its Finance Minister Satsuki Katayama. In the speech, Katayama said Japan must also push forward advanced fintech initiatives, citing the employ of ETFs as inflation hedges in the US.
“In the United States, crypto assets are increasingly used through ETFs as a hedge against inflation, and Japan must also pursue advanced fintech initiatives,” she said in an English translation of the speech.
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