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Japan’s financial regulator is weighing potential rule changes that could pave the way for cryptocurrency exchange-traded funds (ETFs), with local media reporting that 2028 is being discussed as an early target.
According to a report by Nikkei, citing people familiar with the matter, Japan’s Financial Services Agency plans to amend its regulatory framework to allow crypto to be included as eligible ETF assets alongside stronger investor-protection mechanisms.
Major financial groups, including Nomura Holdings and SBI Holdings, are among the first companies expected to develop crypto-linked ETF products, Nikkei reported.
If implemented, the changes would lower barriers for Japanese retail investors aiming for regulated exposure to Bitcoin (BTC) and other digital assets through traditional brokerage accounts. The move would also bring Japan closer to markets like the United States and Hong Kong, which approved spot crypto ETFs in 2024.
Japan sends another policy signal, not an approval
The discussions reflect regulatory intent rather than a finalized policy shift. The FSA has not publicly confirmed a timeline, and any change would likely require formal consultations and revisions before crypto ETFs could be approved under Japan’s existing rules.
At the time of writing, crypto ETFs remain unavailable in Japan due to current policies that restrict ETF-eligible assets. While the regulator has refined its approach to crypto, ETFs tied directly to digital assets have so far remained outside the framework.
Nikkei estimated that Japanese crypto ETFs could eventually reach 1 trillion yen, worth about $6.4 billion, in assets. However, the estimates are speculative and depend on market conditions, investor demand and finalized regulations.
Related: Japan’s finance minister backs exchanges as gateway for digital assets
Industry positioning already underway
SBI Holdings has previously outlined plans to launch a crypto ETF in Japan. On Aug. 6, 2025, the company revealed plans to launch a Bitcoin-XRP dual ETF and a gold-crypto ETF structure.
At the time, SBI said discussions with authorities were ongoing and that these plans depended on regulatory approval.
On Jan. 5, Japan sent a clear welcome signal to digital assets through remarks by its Finance Minister Satsuki Katayama. In a speech, Katayama said that Japan must also push advanced fintech initiatives, citing ETFs being used as inflation hedges in the US.
“In the US, crypto assets are increasingly used via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives,” she said in an English translation of the speech.
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