SBI’s Crypto ETF Pause: Regulatory Fog Spooks Japan’s Banking Giant

Japan's SBI Holdings hits the brakes on crypto ETF plans—regulators won't play ball. Again.

Wall Street gets spot Bitcoin ETFs while Tokyo twiddles its thumbs. When will the FSA join the 21st century?

Behind the hesitation: Bureaucrats treating digital assets like radioactive waste. Meanwhile, retail investors bypass traditional finance entirely.

One cynical truth: Banks only want in when they can control the rules. Too bad crypto doesn't wait for permission.

Media Reports Misinterpreted Presentation

The confusion appears to stem from SBI’s latest earnings presentation, which hinted at the possibility of crypto-based ETFs. According to reports, the company was planning two dual-asset ETFs—one combining gold with digital assets, and another pairing Bitcoin with XRP. However, these references were part of preliminary discussions, not concrete actions.

In a statement to Cointelegraph, an SBI representative confirmed, “Contrary to some media reports, we have not filed any applications with the authority to form an ETF related to crypto assets.” The spokesperson stressed that the firm is still in the planning phase and will not proceed until regulations are clearer.

Japan’s FSA Plays a Key Role

SBI Holdings’ decision to pause its crypto ETF efforts ties closely to changes proposed by Japan’s Financial Services Agency (FSA). On June 24, 2025, the FSA suggested that certain digital assets could be recognized as financial instruments under the Financial Instruments and Exchange Act (FIEA). This change could dramatically shift how crypto products are structured and regulated in Japan.

Because of these pending regulatory updates, SBI has chosen to wait before filing any formal ETF applications. “The filing will be done after these legal revisions have been made,” the company stated.

Future ETFs to Be Filed via SBI Global Asset Management

While denying any current applications, SBI Holdings confirmed that future crypto ETFs—if pursued—will be filed through its investment subsidiary, SBI Global Asset Management. This entity will be responsible for managing any approved ETFs when regulatory conditions allow.

When asked about the target audience for its crypto products, SBI said its focus will be on retail investors rather than institutions. The company aims to “democratize access to alternative investments,” making products like crypto ETFs more accessible to everyday investors.

Waiting for Regulatory and Tax Clarity

SBI Holdings made it clear that regulatory uncertainty is the main barrier to moving forward with any crypto ETF products. Both legal and tax frameworks need to be finalized before the firm feels confident submitting official applications.

Until then, any potential ETF offerings remain in the early planning stages. The company emphasized that no additional details beyond what was shared in its quarterly earnings report are currently available.

What’s Next?

Although SBI hasn’t filed any ETF applications yet, its interest in crypto asset funds remains strong. The company appears ready to act once Japan’s regulatory framework provides the green light. As the FSA continues to shape the legal landscape for crypto investments in Japan, investors will be watching closely to see how and when SBI might MOVE forward.