Japan's Financial Services Agency (FSA) is considering regulatory amendments that could allow crypto assets to qualify for exchange-traded fund (ETF) listings as early as 2028, according to Nikkei. The regulator has set a preliminary timeline around 2028, alongside enhanced investor protection measures.
If enacted, Japan would become the latest major financial market to open the door to spot crypto ETFs, following the U.S. and Hong Kong — both of which approved spot Bitcoin ETFs in 2024. Finance Minister Satsuki Katayama recently voiced support for digital assets, noting that in the U.S., crypto ETFs are increasingly used as inflation hedges, and Japan must also push forward with advanced fintech initiatives.
Traditional Finance Giants Poised to Enter
Market participants expect Nomura Holdings and SBI Holdings to be among the first Japanese traditional financial institutions to enter the crypto ETF space once regulations allow. Analysts estimate that Japanese crypto ETFs could attract ¥1 trillion (approximately $6.4 billion) in assets under management, though the figure remains speculative. Notably, SBI Holdings announced plans as early as August 2025 to launch a Bitcoin and XRP dual ETF, signaling its proactive stance.
Regulatory Overhaul and Tax Reform in Motion
The ETF plan is part of a broader crypto regulatory reform in Japan. The FSA is working to shift crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act, with a reform report expected by 2025 and a bill to be submitted to the regular Diet session in 2026. On the tax front, the current top rate of 55% on comprehensive taxation is under review; the FSA is considering a flat 20% separate tax. If approved, this would significantly boost net returns for investors and create a more favorable environment for crypto ETF products.
Overall, Japan aims to balance innovation with investor protection, learning from past crypto exchange failures. Nomura and SBI have already positioned themselves, awaiting the legal green light to launch the nation's first crypto ETFs.