Bitcoin ETFs Edge Closer in Japan as Regulators Tighten Crypto Oversight

Japan is moving closer to allowing Bitcoin exchange-traded funds (ETFs). The country’s first product could potentially arrive in 2028 if planned regulatory changes move forward, according to the latest Nikkei report.

The development comes after amendments approved by lawmakers that bring crypto assets under the Financial Instruments and Exchange Act, prompting the Financial Services Agency (FSA) to begin revising investment-fund rules so investment trusts and ETFs can directly hold digital assets.

The transition also means that crypto oversight will move away from the Payment Services Act.

Bitcoin ETF Momentum Builds in Japan

Some estimates suggest Japanese Bitcoin ETFs could attract up to JPY 3 trillion by fiscal 2028. However, it is important to note that no such investment vehicle has been cleared for launch. Before any such product reaches the market, Japan must complete further regulatory revisions to permit funds offering exposure to crypto assets. Major financial firms such as SBI Holdings and Nomura are reportedly developing crypto investment products.

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