Japan Weighs Crypto ETF Approval by 2028 as Regulator Reviews Rules

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Japan’s Financial Services Agency (FSA) has plans that could allow cryptocurrency-linked exchange-traded funds (ETFs) to be listed as early as 2028, which would broaden investor access to digital assets under traditional investment structures.

Under a proposed framework, the Japanese financial regulator would amend its regulations to add cryptocurrencies such as Bitcoin to the list of assets eligible for ETFs and implement stronger protections for investors if necessary. The reclassification would align Japan more closely with markets like the United States and Hong Kong, which approved spot crypto ETFs in 2024.

Major Japanese financial services companies like Nomura Holdings and SBI Holdings are already believed to be able to launch the first crypto ETF products on the Tokyo Stock Exchange once regulatory approval is granted. Japan’s crypto ETF market is estimated to potentially reach ¥1 trillion (approx. US$6.4 billion).

Although the FSA has not publicly confirmed a timeline, sources suggest that 2028 is an early target for listing. Current regulations in Japan restrict crypto ETF products from eligibility. The FSA has also already signaled its intention to revise the Financial Instruments and Exchange Act to give certain crypto assets explicit status as financial instruments, bringing them within the scope of insider-trading and market-abuse regulations.