Japan is poised to approve its first cryptocurrency exchange-traded funds (ETFs) in 2028, a recent report by Nikkei Asia states. The move will give Japan-based retail investors easy access to leading digital assets such as Bitcoin (BTC), Ethereum (ETH), and others.
Japan to greenlight crypto ETF in 2028
Japan’s financial watchdog, the Financial Services Agency (FSA), is set to include digital assets in the list of specified assets for ETFs. At the same time, the watchdog will propose stronger safety mechanisms to protect investors.
Per sources close to the matter, SBI Holdings and Nomura Holdings are among the leading financial institutions that are in contention for creating the country’s first crypto ETFs. The Tokyo Stock Exchange will then list the ETFs.
It should be noted that compared to countries like the US and crypto-friendly regimes like Singapore or the UAE, investing in digital assets is not as straightforward a process in the island nation. Japan imposes tax on crypto assets, which can surge as high as 55%.
Countries like the US approved their first crypto ETFs in 2024. Since then, the US Securities and Exchange Commission (SEC) has approved several other altcoin-based ETFs, attracting funds to the tune of billions of dollars.
According to data from SoSoValue, US-based spot Bitcoin ETFs currently hold total net assets worth $115.88 billion, while spot ETH ETFs currently hold assets worth close to $17.7 billion. Similarly, total funds in spot XRP ETFs currently stand around $1.37 billion.
Crypto ETF boom in Asia
Besides Japan, several other Asian countries are working toward launching their crypto ETFs to foster digital asset adoption. For instance, earlier this month, Thailand made forward strides in its attempt to launch crypto ETFs.
Similarly, South Korean presidential candidate Lee Myung had promised to support Bitcoin ETFs in September 2025, indicating the strong demand for the regulated financial product among the country’s population.
In the US, the crypto ETFs space is becoming increasingly competitive as a large number of firms rush to file ETFs with the US SEC, including for altcoins such as SUI, HYPE, and others. In an interview with AltCoinDesk, Roland Berger’s Head of Digital Assets, Dr. Anish Shivdasani, stated that ETFs are a major catalyst for altcoin adoption.
