ETF giants SBI, Nomura lead charge
Japan is moving toward the launch of its first crypto exchange-traded funds (ETFs), with financial heavyweights SBI Holdings and Nomura Holdings preparing products for a possible 2028 debut. According to coindesk.com, both firms are developing ETF offerings that would give Japanese investors direct access to digital assets like bitcoin (BTC) and XRP. In August, SBI Holdings filed for a dual-asset ETF combining exposure to both cryptocurrencies, while Nomura has publicly expressed its intention to enter the space.
The Tokyo Stock Exchange is expected to be the listing venue for these new instruments. Nomura Holdings Executive Officer Hajime Ikeda noted that around 60% of Japanese investors have shown interest in some form of crypto investment, highlighting significant demand. Despite this appetite, current regulations have kept crypto ETFs off the market until now.
Lawmakers weigh crypto’s ETF future
The Financial Services Agency (FSA), Japan’s main financial regulator, is at the center of this policy shift. The FSA plans to revise the Investment Trust Act to include cryptocurrencies as specified assets eligible for ETFs, a move that would overturn previous restrictions that banned such products.
Reuters previously reported that these regulatory changes could take effect as early as 2026 or 2027 if approved by parliament, but Nikkei and other local media now point to 2028 as the likely year for actual trading to begin. On January 5, Finance Minister Satsuki Katayama referenced ETFs as inflation hedges in the U.S., signaling political support for advanced fintech initiatives in Japan.
On paper, regulatory approval could come sooner; in practice, the path through parliament and subsequent implementation may push the launch closer to 2028.
Investor safeguards in regulatory spotlight
With new asset classes come new risks, and Japanese regulators are emphasizing investor protection as they craft rules for crypto ETFs. The FSA’s planned framework will include enhanced safeguards for retail investors, who make up a large portion of Japan’s financial markets. These measures are designed to address concerns about volatility and custody associated with digital assets.
Crypto ETFs were previously banned in Japan, but authorities have now lifted this restriction as part of broader efforts to modernize financial regulation.
It remains uncertain what specific protections will be mandated, but industry observers expect requirements around asset custody and transparency. The FSA has indicated that these guardrails are a critical component of any forthcoming rule changes.
Crypto ETFs could hit ¥1 trillion
Estimates from multiple sources suggest that Japan’s crypto ETF market could reach approximately 1 trillion yen ($6.4 billion) once products become available. This figure reflects both pent-up demand and the scale of institutional players like SBI and Nomura entering the field. For comparison, U.S.-listed spot bitcoin ETFs have accumulated $116 billion in assets since their January 2024 launch, while spot ether ETFs hold $18 billion.
A KPMG Japan executive previously suggested that a Bitcoin ETF was unlikely before 2027; however, with regulatory momentum building and major firms readying products, the timeline appears to be accelerating toward the 2028 mark.
On August 6, 2025, SBI Holdings revealed plans for not only a Bitcoin-XRP dual ETF but also a gold-crypto hybrid structure—pending regulatory approval. Whether these innovative products will attract flows comparable to their U.S. counterparts is still an open question.
Japan’s approach contrasts with other major economies: while spot crypto ETFs are already live in the U.S., Japanese lawmakers are taking a more measured route focused on investor protection and market stability.
What Matters Most
- •Japan’s Financial Services Agency plans to allow crypto ETFs under the Investment Trust Act, with trading likely to start in 2028.
- •SBI Holdings filed for a Bitcoin-XRP dual ETF in August 2025; Nomura Holdings is also preparing crypto ETF products.
- •Japanese crypto ETFs could reach an estimated market size of 1 trillion yen ($6.4 billion) upon launch.
Key developments still ahead
If Japan’s Financial Services Agency secures parliamentary approval for rule changes by 2026 or 2027 as previously reported by Reuters, crypto ETFs from SBI Holdings and Nomura Holdings could be listed on the Tokyo Stock Exchange as early as 2028; if approval is delayed or fails, the launch timeline remains unclear and crypto ETFs will remain unavailable in Japan.
