Japan’s Crypto Revolution: First Spot Bitcoin ETFs Set to Launch by 2028, Nikkei Reports

Tokyo's financial regulators are finally catching up.

After years of watching from the sidelines, Japan is poised to greenlight its first-ever spot cryptocurrency exchange-traded funds (ETFs). According to a bombshell Nikkei report, the Financial Services Agency (FSA) is targeting a 2028 debut—a move that could unlock billions in dormant institutional capital and reshape Asia's digital asset landscape.

The Regulatory Thaw

Forget the cautious, piecemeal approvals of the past. This isn't about futures-based proxies or synthetic products. The FSA's plan signals a direct, spot-market embrace of crypto assets. It's a tectonic shift for a market known for its stringent investor protection rules, suggesting a newfound confidence in market infrastructure and custody solutions that meet Japan's gold-plated standards.

Why 2028 Matters

The timeline isn't arbitrary. It gives domestic exchanges, custodians, and asset managers a clear runway to build. Expect a scramble for partnerships with global crypto-native firms who've already navigated these waters in the US and Europe. The race to become the 'BlackRock of Japan' for crypto ETFs is officially on.

A Gateway for the Giants

Pension funds, insurance behemoths, and conservative retail investors—entities that have largely viewed crypto as a speculative curiosity—now get a regulated, familiar vehicle for exposure. This isn't just about adding a new product; it's about legitimizing the entire asset class for the world's third-largest economy. The potential inflow could make current trading volumes look like a warm-up act.

The Global Ripple Effect

Japan's entry adds serious weight to the global ETF wave. It pressures other Asian financial hubs to accelerate their own plans or risk capital flight. The era of crypto as a niche, offshore game is fading fast. The action is moving squarely onto regulated exchanges.

Of course, the traditional finance old guard will call it reckless—right up until they launch their own fund and collect the management fees. By 2028, the question won't be if you're invested, but how much. The walls between crypto and conventional finance aren't just crumbling; they're being dismantled with bureaucratic precision.

Nomura, SBI Holdings Poised to Create Japan’s First Crypto ETFs

Per the Nikkei report, Japan’s largest asset manager Nomura Holdings and financial services giant SBI Holdings have been developing related ETF products that await approval for listing on the Tokyo Stock Exchange.

If approved, the crypto ETFs would allow investors to trade digital assets similar to stocks or gold ETFs.

Last year, SBI Holdings confirmed plans to launch its XRP ETFs upon regulatory greenlight. In a presentation published in August, SBI revealed plans to launch two ETFs. The first product is a Gold and Crypto Assets ETF that will invest 49% of its assets in Bitcoin (BTC), while the second will be a Bitcoin and XRP ETF that will offer exposure to these two tokens.

The U.S. and Hong Kong already approved their first spot crypto ETFs in 2024.

Japan Finance Minister Supports Crypto Trading With Stock Exchanges

Japan’s Finance Minister Satsuki Katayama recently touted that 2026 would be the “digital year,” expressing support to crypto trading at stock exchanges.

Per Japanese crypto news site Coinpost, Katayama pointed to how crypto investment products have gained traction in the West.

“In the U.S., through ETF structures, they have spread as a means of hedging against inflation, and similar efforts are expected in Japan,” she said.