Japan Poised to Launch Its First Crypto ETFs by 2028

Japan is preparing for a significant shift in its financial markets as regulators advance plans that could introduce the country’s first cryptocurrency exchange-traded funds (ETFs) by 2028. A new report from local media outlet Nikkei signals a meaningful evolution in the country’s stance on digital assets, potentially unlocking new investment opportunities for institutions and retail investors.

FSA Moves Toward Approving Japan’s First Crypto ETFs

According to a Nikkei report, the Japanese Financial Services Agency (FSA) is actively working to greenlight crypto-based ETFs, ending its long-standing ban on cryptocurrency ETFs. 

The FSA is focused on building a robust framework prioritizing investor safety, market transparency, and risk mitigation. Under the current trajectory, the first batch of crypto ETFs could be approved by 2028.

Interestingly, this updated timeline deviates from earlier industry speculation. Before the latest reports, a Japanese KPMG executive had projected that a Bitcoin ETF would likely not emerge in the country until 2027. However, the regulator’s deeper structural reviews have lengthened the window to 2028, reflecting a cautious but committed approach. 

Meanwhile, it’s worth noting that this accelerated regulatory activity comes shortly after the Bank of Japan decided to hold interest rates steady amid slowing inflation. The move underscores the country’s search for fresh investment avenues.

Nomura and SBI Expected to Lead Crypto ETF Race

Per Nikkei, Nomura Holdings and SBI Holdings are positioned as the leading contenders expected to secure the first wave of crypto ETF listings on the Tokyo Stock Exchange once approved for trading. 

Both companies have been aggressively expanding their crypto infrastructure and product strategies. SBI Holdings previously demonstrated its ambition when it proposed launching Bitcoin and XRP ETFs, pending regulatory clearance. 

Nomura Holdings, meanwhile, has highlighted a strong domestic appetite for crypto investments. The firm’s Executive Officer, Hajime Ikeda, noted that about 60% of Japanese investors want access to crypto exposure, indicating that demand in the country is ripe for regulated digital-asset products.

Market Impact and What Lies Ahead For Japan

The Nikkei report also estimates that Japan’s crypto ETF market could reach a valuation of $6.4 billion once regulatory approval is granted, immediately positioning the country as a major player in Asia’s digital-asset investment landscape.

The country’s Finance Minister Satsuki Katayama recently stated that 2026 would be the “digital year” for Japan, signaling the government’s intent to integrate crypto and blockchain into the nation’s mainstream economic infrastructure. Her remarks echo global trends, as countries like Hong Kong and the United States rolled out their first spot crypto ETFs in 2024, accelerating worldwide regulatory acceptance.

If Japan stays the course, analysts expect increased institutional activity, higher liquidity, and intensified global attention on the country’s digital-finance transformation. While delays remain possible, the prospect of crypto ETFs launching by 2028 marks Japan’s strongest institutional embrace of digital assets yet.