Japan could launch its first Bitcoin exchange-traded fund as early as 2028 as regulators prepare rules allowing investment trusts and ETFs to hold crypto assets directly.
A July 23 Nikkei report revealed that the Financial Services Agency (FSA) plans to revise investment-fund rules following legislative amendments that bring cryptocurrencies under the Financial Instruments and Exchange Act framework. The regulatory shift moves Japan toward treating crypto as a formal financial investment product rather than purely a payment asset.
However, immediate ETF launches remain restricted. Japan still requires detailed operational rules and updates to its investment-trust framework before managers can deploy crypto-focused products. JPX chief executive Hiroki Yamamichi emphasized that listings can proceed once the legal framework and tax treatments are finalized.
Major financial institutions are already positioning themselves. SBI Securities and Rakuten Securities are preparing crypto investment trusts, while Nomura, Daiwa, SMBC-linked firms, and Asset Management One explore potential offerings. Products may extend beyond Bitcoin to liquid tokens like Ethereum or Bitcoin futures. A Nomura survey showed 79% of interested respondents plan to invest in crypto over the next three years, with 65% viewing it as a diversification tool.
Unlike the US market’s institutional focus, retail investors could drive Japanese demand. With Japanese households holding about half their wealth in cash, Nikkei estimates local Bitcoin ETFs could attract up to ¥3 trillion ($20.3 billion) by fiscal 2028. Additionally, institutional interest is emerging, with Okayama’s National Business Pension Fund planning a 1% allocation to crypto-related funds in 2026.
