Japan’s financial regulatory body is contemplating modifications to its rules that could enable cryptocurrency exchange-traded funds (ETFs) to be created by 2028.

According to a recent report from Nikkei, which quotes sources familiar with the discussions, the Financial Services Agency (FSA) is looking to update its framework to permit cryptocurrencies to be included as eligible assets for ETFs while enhancing investor protections.

Prominent financial institutions like Nomura Holdings and SBI Holdings are anticipated to be among the initial companies introducing crypto-linked ETF products.

If these reforms take place, they would lower the hurdles for Japanese retail investors seeking regulated access to Bitcoin and other digital currencies via traditional brokerages. This step would align Japan more closely with markets such as the United States and Hong Kong, which approved spot crypto ETFs in 2024.

Japan Signals Regulatory Aspirations

These discussions indicate the regulator’s intentions, not confirmed policy updates. The FSA has yet to publicly affirm a timeline for these changes, which would require formal consultations and modifications before crypto ETFs could be sanctioned under current rules.

Presently, crypto ETFs are not available in Japan, primarily due to existing policies that limit eligible assets for ETF investment. While there has been a refinement in how the regulator approaches cryptocurrencies, ETFs directly involving digital assets remain statutorily excluded.

In terms of financial potential, Nikkei estimates that Japan’s crypto ETFs could eventually amass about 1 trillion yen (around $6.4 billion) in assets. However, these projections are speculative and dependent on market dynamics, investor interest, and finalized regulations.

Industry Preparations Already Underway

SBI Holdings previously communicated its intent to launch a crypto ETF in Japan. On August 6, 2025, the organization disclosed plans for a Bitcoin-XRP dual ETF alongside a gold-crypto ETF offering, stating that their initiatives hinge on regulatory approvals.

Additionally, Japan’s Finance Minister, Satsuki Katayama, signaled support for digital assets, emphasizing the need to adopt advanced fintech strategies. She stated, “In the US, crypto assets are increasingly utilized via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives.”