Japan Moves Closer to Approving Spot Crypto ETFs
Japan is getting closer to allowing spot cryptocurrency exchange-traded funds, with regulators signaling that the first approvals could come as early as 2028.
According to a report by Nikkei Asia, Japan’s Financial Services Agency plans to add cryptocurrencies to the list of assets that can be used in ETF products. If approved, this would allow funds that hold Bitcoin and other digital assets directly to be listed on the Tokyo Stock Exchange.
That would give investors a regulated and familiar way to access crypto through regular brokerage accounts.
Making crypto easier for everyday investors
The goal is to lower barriers and reduce risk for individual investors. Unlike buying crypto directly, ETFs don’t require managing wallets, private keys, or on-chain transfers. Investors could simply buy and sell crypto-linked products the same way they trade stocks.
Spot crypto ETFs have already gained traction elsewhere. The United States and Hong Kong approved their first products in 2024, opening the door for large institutions to enter the market. In the U.S., spot Bitcoin ETFs now hold around $120 billion in assets, with pension funds, universities, and government-linked investors joining in.
Big Japanese firms preparing to move
Major financial groups in Japan are expected to be among the first to launch crypto ETFs. Nomura Holdings and SBI Holdings are widely seen as potential issuers, though any product would still need final approval from the Tokyo Stock Exchange.
Policy changes are speeding things up
Momentum is building thanks to broader policy reforms. Earlier this month, Japan’s finance minister called 2026 “Digital Year One” and outlined steps to better integrate digital assets into the financial system.
These proposals include:
- Cutting crypto taxes to a flat 20%
- Allowing banks and brokerages to hold and trade cryptocurrencies
- Classifying assets like Bitcoin and Ether as financial products
Together, these changes would move crypto closer to traditional markets and boost investor confidence.
Growing demand and regional pressure
Investor interest is already strong. Surveys show that more than 60% of Japanese investors want exposure to crypto. Industry leaders warn that delaying action could cause Japan to fall behind financial hubs like the U.S., Hong Kong, and Singapore.
Pressure is also coming from nearby markets. South Korea plans to introduce Bitcoin ETFs in 2026, raising expectations that Japan will move quickly to stay competitive.
If approved, spot crypto ETFs would mark a major shift in Japan’s approach to digital assets and could accelerate adoption among both retail and institutional investors in the years ahead.
