Japan’s financial watchdog is considering potential rule changes that could pave the way for the listing of the country’s first set of crypto exchange-traded funds (ETFs) as early as 2028.
Japan Weighs Rule Changes For Crypto ETF Approval
According to a Monday report by Nikkei, citing anonymous sources familiar with the matter, Japan’s Financial Services Agency (FSA) intends to modify its regulatory framework to allow crypto to be included as eligible assets for ETFs under the Investment Trust Act.
Prominent financial giants, including Nomura Holdings and SBI Holdings, are among the first to be expected to launch crypto-linked ETFs for listing on the Tokyo Stock Exchange, the report said.
If implemented, the refined rule changes would make it easier for Japanese retail investors to access regulated exposure to Bitcoin and other cryptocurrencies through traditional brokerage accounts.
Nikkei estimates that Japan-listed crypto ETFs could eventually reach 1 trillion yen ($6.4 billion) in assets.
Japan Lags Behind Other Jurisdictions
The development follows the resounding success of crypto ETFs in the United States, where spot BTC ETFs have amassed $116 billion in net assets since their debut in January 2024— equivalent to 6.5% of the apex crypto’s total market cap.
The rollout of U.S. crypto ETFs has widened institutional access to BTC, attracting participation from pension funds, family offices, and university endowments, including Harvard’s.
Spot Ether (ETH) ETFs, which went live later, have accumulated $18 billion so far.
Late last year, U.S. regulators simplified the listing process for digital asset products, allowing issuers to file applications for a wider range of ETFs tied to low-cap altcoins. Spot ETFs for Ripple’s XRP, Solana, Dogecoin, Chainlink, Litecoin, and Hedera went live on Wall Street in 2025 as a result, with more funds expected to launch in 2026.
A 2028 debut would also leave Japan years behind Hong Kong, which approved its first crypto ETFs in 2024, with funds offering investors exposure to Bitcoin, Ether, and Solana. Unlike their U.S. peers, Hong Kong’s ETFs permit more tax-efficient in-kind creations and redemptions.
Source: https://zycrypto.com/japan-to-allow-the-trading-of-its-first-crypto-etfs-by-2028-report/
