Cryptocurrency exchange-traded funds could begin trading in Japan as early as 2028 as regulators move closer to recognising digital assets as eligible ETF components.
Nikkei reported that Japan’s Financial Services Agency is preparing to classify cryptocurrencies as specified assets under the Investment Trust Act.
The change would formally allow asset managers to structure and list crypto-linked ETFs on domestic exchanges.
Industry estimates cited by Nikkei suggest Japan’s crypto ETF market could reach 1 trillion yen, or about $6.4 billion, in assets.
A 2028 launch would place Japan several years behind the United States, where spot Bitcoin (CRYPTO:BTC) ETFs began trading in January 2024.
US-listed spot Bitcoin ETFs now collectively hold around $116 billion in assets, according to market data.
Spot Ether (CRYPTO:ETH) ETFs, which launched later, have attracted roughly $18 billion in assets to date.
Reuters previously reported that Japanese rule changes could take effect earlier, possibly in 2026 or 2027, following parliamentary approval.
The Financial Services Agency has not publicly confirmed a specific timeline for ETF approval.
The regulator did not respond to media requests for comment following the Nikkei report.
Japan’s Finance Minister Satsuki Katayama recently voiced strong support for integrating crypto trading services into the country’s financial markets.
I fully support the integration of crypto trading services by Japan’s stock exchanges.
Satsuki Katayama said.
Katayama described 2026 as Japan’s “digital year” and framed digital assets as part of a broader financial modernisation push.
She highlighted the role of regulated trading venues in expanding crypto adoption while maintaining investor protections.
Katayama also pointed to US crypto ETFs as examples of products that can provide diversification and inflation-hedging benefits.
Japanese financial institutions have already begun preparing ETF products ahead of regulatory approval.
In August, SBI Holdings filed for a dual-asset crypto ETF offering direct exposure to both Bitcoin and XRP (CRYPTO:XRP).
The proposed fund would be one of the few institutional products globally to bundle XRP alongside Bitcoin.
Nomura Holdings has also publicly expressed interest in developing crypto ETFs for the Japanese market.
Asset managers see ETFs as a gateway for institutional and retail investors seeking regulated crypto exposure.
Any crypto ETF would require approval for listing by the Tokyo Stock Exchange before trading could begin.
Market observers expect regulatory clarity to drive increased participation from traditional financial firms.
A delayed launch could limit Japan’s ability to capture early global ETF inflows.
Supporters argue that a cautious rollout could strengthen long-term investor confidence.
At the time of reporting, Bitcoin price was $87,705.13.