The Japan crypto ETF dream can soon see the light of the day with the nation’s regulatory officials putting a set timeline on the approval.
News outlet Nikkei reported on Monday that Japan is preparing to introduce its first exchange-traded funds (ETFs) focused on cryptocurrencies, which could hit the market as early as 2028.
Japan’s Financial Services Agency (FSA) is set to allow cryptocurrencies to be included in ETFs, while also putting stronger safeguards in place to protect investors.
The ETFs would allow retail investors to gain regulated and straightforward exposure to Bitcoin and other digital assets.
The addition, which comes at a time when global crypto ETF market has seen institutional and retail support, will see crypto trading being provided similar to other investment options already extended by institutional players
Nomura Holdings and SBI Holdings likely the first to tap into crypto ETFs
Big financial players like Nomura Holdings and SBI Holdings are preparing to roll out the country’s first crypto ETFs, which would still need the green light from the Tokyo Stock Exchange, per Nikkei report.
The move could make it much easier for everyday investors to access Bitcoin and other digital assets in a safer and regulated way.
A big advantage of using ETFs to carry out investments in cryptocurrencies is that they make it easier to have access to investment in the market, thereby minimizing the amount of time and knowledge required in managing digital currency wallet.
The move is also indicative of Japan’s growing acceptance of digital assets that may help bridge the gap between institutional and retail investors within the country’s increasingly volatile crypto environment.
Japan’s crypto ETF leap comes as big players embrace crypto
Japan’s crypto ambitions come on the back of a larger market acceptance for crypto ETFs amid more and more big investors turning to Bitcoin ETFs to get exposure.
Pension funds, university endowments, including Harvard, and government-backed investors have started adding the products to their portfolios. In the U.S., spot Bitcoin ETFs now hold about $120 billion in assets.
Looking at Japan, asset managers are even estimating that the country’s upcoming crypto exchange-traded funds, or ETFs, may eventually reach around 1 trillion yen or $6.4 billion. Therefore, this demonstrates that the asset class, or the field, is shifting gradually from the fringes into the mainstream, making it easier and safer for financial institutions to participate.
Japan’s new timeline supported by government
Japan’s Finance Minister Satsuki Katayama had previously called 2026 the “digital year,” signalling support for crypto trading on stock exchanges.
Speaking to local media, Katayama highlighted the growing popularity of crypto investment products in the West.
“In the U.S., ETFs have become a tool for hedging against inflation, and similar developments are expected in Japan,” she said, underscoring the government’s interest in expanding regulated access to digital assets and encouraging their integration into mainstream financial markets.