Key Takeaways
- The FSA is considering adding digital assets to its list of permissible exchange-traded fund (ETF) underlying investments
- Nomura Holdings and SBI Holdings have already developed crypto ETF structures awaiting regulatory clearance for Tokyo Stock Exchange listing.
Japan’s Financial Services Agency (FSA) is exploring regulatory amendments that would permit cryptocurrency exchange-traded funds, with 2028 emerging as a potential launch window, as per local media reports.
The FSA is considering adding digital assets to its list of permissible exchange-traded fund (ETF) underlying investments, marking a potential reversal of existing restrictions that currently prohibit such products. According to reports, the proposed regulatory changes could enable Japan’s first spot crypto ETFs by 2028, though the timeline remains speculative and subject to formal policy development.
Under this, Nomura Holdings and SBI Holdings—two of Japan’s largest financial institutions—have already developed crypto ETF structures awaiting regulatory clearance for Tokyo Stock Exchange listing.
SBI Holdings disclosed specific ETF plans in an August presentation, outlining two distinct products, as a Gold and Crypto Assets ETF allocating 49% to Bitcoin, and a combined Bitcoin-XRP ETF providing exposure to both tokens. The company confirmed discussions with regulators were ongoing and emphasized that implementation depends entirely on official authorization.
Finance Minister Satsuki Katayama recently characterised 2026 as Japan’s “digital year,” voicing support for cryptocurrency trading through stock exchanges. Speaking in January, Katayama referenced Western markets where crypto investment vehicles have gained momentum.
“In the U.S., crypto assets are increasingly used via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives,” the finance minister stated, according to Coinpost’s English translation of her remarks.
The regulatory exploration responds to demonstrated investor appetite. Hajime Ikeda, Executive Officer at Nomura Holdings, cited survey data showing over 60% of Japanese investors expressing interest in cryptocurrency exposure “in some form or other.”
As per reports, FSA intends to modify its framework to classify cryptocurrencies as eligible ETF assets while implementing enhanced investor protections. The amendments would enable Japanese retail investors to access Bitcoin and other digital assets through conventional brokerage accounts rather than specialised cryptocurrency platforms.
Approved crypto etfs would function similarly to existing stock or gold ETF products, allowing investors to trade digital asset exposure without directly purchasing or securing cryptocurrencies. This structure addresses longstanding concerns about wallet security and exchange vulnerabilities that have deterred some traditional investors.
Japan’s deliberations occur as other major economies have already authorized similar products. The United States and Hong Kong both approved spot cryptocurrency ETFs in 2024, creating regulated investment vehicles that have attracted significant capital inflows.
Local media firm Nikkei’s analysis estimates Japanese crypto ETFs could eventually accumulate approximately 1 trillion yen—roughly $6.4 billion—in assets under management. Meanwhile, the FSA has not publicly confirmed any specific timeline or regulatory approach, and formal consultations would likely precede any policy changes.