Japan's push to legalize crypto asset ETFs took a decisive step forward. Finance Minister Satsuki Katayama publicly confirmed the government is moving ahead as planned, following the lower house's approval of a regulatory shift that moves spot crypto asset oversight from the Payment Services Act to the Financial Instruments and Exchange Act. This reclassifies crypto assets as fully regulated financial products, aligning their legal treatment with equities and bonds.
The regulatory change provides a solid legal foundation for listing and trading crypto asset ETFs on Japanese exchanges. Under the current timeline, the first products could begin trading as early as next year.
Regulatory Overhaul: Crypto Moves Under Securities Law
The core shift: once covered by the Payment Services Act, crypto assets will now fall under the same disclosure, issuance, and trading rules as securities. Katayama told parliament the government will follow the intended path. Analysts say this removes the biggest legal hurdle — under the old regime, the ambiguous status of crypto made ETF issuance nearly impossible. SBI Holdings quickly seized the opportunity. In May, the group announced plans for a new crypto asset ETF, including a dual-asset structure offering regulated access to both Bitcoin and XRP. SBI is one of Japan's largest financial groups, with operations spanning banking, brokerage, and asset management.
SBI's Dual-Asset ETF: Bitcoin Plus XRP, With a Gold Hybrid Option
Beyond the Bitcoin-XRP dual ETF, SBI proposed a hybrid investment fund that combines gold ETFs and crypto asset ETFs. The allocation: 51% gold ETFs and 49% crypto asset ETFs (such as Bitcoin ETFs). This structure targets more cautious institutional and retail investors seeking diversified exposure.
| Product | Content | Target Audience |
|---|---|---|
| Dual-asset ETF | Bitcoin and XRP | Investors seeking regulated crypto access |
| Hybrid fund | 51% gold ETF, 49% crypto asset ETF | More cautious institutional and retail investors |
SBI set an ambitious target: reaching roughly ¥5 trillion ($32 billion) in assets under management within three years of launching these products. That is an aggressive goal for crypto-themed investment vehicles in Japan's financial sector, signaling strong expected demand.
The group also hopes to secure an early market lead over rivals such as Nomura and Rakuten Securities. With regulatory clarity expanding, competition in Japan's crypto ETF space is expected to intensify in the coming period.
XRP's Role: Long-Standing Ripple Partnership Surfaces
SBI's inclusion of XRP in its ETF plan aligns with its long-standing corporate partnership with Ripple. Ripple, known for its XRP-focused payment solutions, has built close business ties in the Japanese market, and this collaboration remains strategically important for SBI. By uniting Bitcoin and XRP in the same fund, and separately offering a gold-crypto hybrid, SBI is trying to attract both aggressive crypto investors and risk-averse clients, all within a regulated framework.
Market analysts expect SBI's pioneering approach and regulatory progress to spur wider adoption of crypto ETFs in Japan, potentially reshaping institutional and retail participation in the years ahead. As Japan prepares to launch crypto asset ETFs, the convergence of traditional finance and blockchain technology is redefining investment options, with major players vying for leadership in a fast-moving sector.