Japan is preparing to launch its first crypto exchange-traded funds by 2028. The Financial Services Authority (FSA) is taking a cautious yet significant step by including cryptocurrencies in the list of approved ETF assets. With the much-anticipated launch of crypto ETFs, Japanese retail investors will gain exposure to assets like Bitcoin.
Japan Moves to Open Crypto ETFs to Retail Investors
According to the Nikkei report, Japan’s financial watchdog is set to approve its first crypto ETFs, with the launch expected by 2028. The regulator is also planning to strengthen the regulatory framework before the ETF launch, fostering investor protection.
With the move, the FSA plans to allow cryptocurrencies to be used as underlying assets for exchange-traded funds. As per reports, Nomura Holdings and SBI Holdings, the two major financial institutions of the country, are expected to launch the first crypto ETFs of Japan, listing them on the Tokyo Stock Exchange. Nomura Holdings Executive Officer Hajime Ikeda stated that the 60% of investors in the country had expressed interest in crypto investments “in some form or other.”
It is worth noting that this development comes on the heels of the Bank of Japan’s decision to keep interest rates unchanged amid slowing inflation.
The Future of Crypto in Japan
Significantly, the potential launch of crypto ETFs in Japan could be a turning point for the country’s crypto space, which previously faced severe restrictions. However, in line with the global race for crypto supremacy, Japan is also making major strides to foster its industry.
As CoinGape reported, Japan’s Finance Minister Satsuki Katayama addressed 2026 as the country’s “first year of digital.” This indicates that Japan is integrating crypto into its national markets. The minister wants local financial institutions to adopt and support cryptocurrencies along with traditional assets.
Crypto ETFs were once banned in the country. But now, as part of the country’s broader efforts to support its cryptocurrency market growth, the country has lifted its ban, paving the way for a potential launch.
Previously, a KPMG Japan executive hinted that the potential launch of a Bitcoin ETF in Japan was unlikely to happen before 2027. The latest report pushes back the timeline even further. When launched, the country believes that its ETFs could grow about 1 trillion yen, translated to $6.4 billion.
The country is already experiencing a major shift. For instance, pension funds, university endowments like Harvard’s, and government-linked investors have started adding Bitcoin and other cryptocurrencies to their portfolios.