Japan Plans Crypto ETF Approval by 2028, Nikkei Reports
- Japan aims to classify crypto as ETF assets and boost protection for retail investors.
- U.S. spot Bitcoin ETFs expanded access, attracting pensions, endowments, and institutional funds.
- Asia races on crypto rules as Japan, South Korea, and Hong Kong expand frameworks.
Japan is preparing to approve its first cryptocurrency exchange-traded funds as early as 2028, according to a report by Nikkei Asia. The move would mark a major shift in the country’s digital asset policy. The Financial Services Agency plans to add cryptocurrencies to the list of base assets for ETFs. At the same time, it intends to strengthen investor protection rules.
Two major financial groups, Nomura Holdings and SBI Holdings, are expected to lead the launches. The products would likely be listed on the Tokyo Stock Exchange. This initiative follows the rapid expansion of crypto ETFs in the United States.
There, spot Bitcoin ETFs have accumulated about $115.8 billion in net assets. That figure equals roughly 6.5% of Bitcoin’s total market value. As institutional interest grows worldwide, Japan’s approach signals a broader effort to integrate digital assets into regulated financial markets.
U.S. and Global ETF Growth Shapes Policy Direction
In the United States, crypto ETFs have widened institutional access to digital assets. Pension funds, family offices, and university endowments have entered the market. Harvard’s endowment is among those participating.
U.S. regulators have also simplified the listing process for digital asset products. As a result, issuers have filed ETFs tied to smaller cryptocurrencies. Spot ETFs for XRP, Solana, Dogecoin, Chainlink, Litecoin, and Hedera launched in late 2025. More launches are expected this year.
Meanwhile, other regions have moved quickly. The United States and Hong Kong approved their first spot crypto ETFs in 2024. In the U.S., these funds now hold close to $120 billion in net assets. Government-linked investors and pension funds have steadily increased exposure.
These developments have shaped policy discussions in Asia. Regulators increasingly view ETFs as a way to provide access without requiring direct token custody.
Asia’s Regulatory Race and Investor Demand
Japan’s push fits into a wider regional trend. In early January, Japan’s finance minister described 2026 as “Digital Year One”. He outlined reforms to integrate digital assets into the financial system.
Proposals include cutting crypto gains taxes to a flat 20%. They also allow banks and brokers to hold and trade cryptocurrencies. In addition, major assets such as Bitcoin and Ether would qualify as financial products.
South Korea is moving on a parallel track. Lawmakers are drafting the Digital Asset Basic Act. The framework aims to support the country’s first spot crypto ETFs. Officials expect the final legislation in the first quarter of this year.
Related: Japan Bond Shock Lifts Gold While Bitcoin Awaits BOJ Signal
Across the region, regulators share another goal. Japan, Hong Kong, and South Korea all plan to integrate regulated stablecoins into mainstream finance. Japan approved its first yen-backed stablecoin last year. Hong Kong expects to issue licences this quarter. South Korea plans a won-based stablecoin market.
Investor interest already appears strong. Surveys show more than 60% of Japanese investors want cryptocurrency exposure. Industry leaders warn Japan could fall behind the United States, Hong Kong, and Singapore without faster action. That timeline raises pressure on Japan to keep pace. Can Japan afford to delay while regional rivals move faster?
