Japan plans to authorize its first Bitcoin exchange-traded funds by 2028, according to many sources. By doing this, a long-standing restriction on these instruments would be lifted, and local investors would have a controlled route to cryptocurrency exposure.
The Financial Services Agency plans to add cryptocurrencies to the list of eligible “specified assets” under the Investment Trust Act by that time. After that change, spot crypto ETFs holding assets like bitcoin could list on the Tokyo Stock Exchange, subject to final approvals.
Big Financial Firms Prepare Japan ETF Products
Major Japanese financial groups are already positioning themselves for the new rules. Nomura Holdings and SBI Holdings are widely viewed as front-runners to launch the country’s first crypto ETFs once regulations allow it.
These products would let investors buy crypto exposure through regular brokerage accounts instead of using exchanges directly. The structure aims to resemble gold and real estate ETFs that are already common in Japan.
Regulatory Shift and Tax Changes
The 2028 objective follows Japan’s years of careful monitoring of digital assets. While maintaining strict guidelines for custody, valuation, and disclosures for any ETF associated with cryptocurrency, regulators now seek to foster growth.
Additionally, lawmakers are considering lowering tax rates on some cryptocurrency investments from as high as 55 percent to about 20 percent for certain holdings. More institutional and long-term investors may enter Japan’s cryptocurrency market as a result of the combination of reduced taxes and more transparent regulations, according to observers.
Japan’s timeline lags behind markets like the United States and Hong Kong, which approved spot bitcoin ETFs in 2024. However, analysts argue that Japan prefers gradual reform to avoid sudden risks in its tightly regulated financial system.
If the plan stays on track, Japan could become a major late entrant in Asia’s crypto ETF landscape by 2028. By that time, several bitcoin and multi-asset crypto ETFs may be ready for listing, giving both retail and institutional investors new regulated options.
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