Japan Prepares for Bitcoin ETFs

Japan could launch its first Bitcoin ETF as early as 2028. According to Nikkei, these funds could attract up to ¥3 trillion by the end of fiscal 2028, with retail investors expected to be the main source of demand.

Japan’s Financial Services Agency is preparing to revise the rules governing investment funds. Cryptocurrencies are expected to be moved from the scope of the Payment Services Act to regulations covering financial instruments. New requirements for market practices and information disclosure will also be introduced.

The new legislation will pave the way for domestic cryptocurrency ETFs, although it will not allow them to launch immediately. The regulator must first develop detailed rules, and each product will require separate approval. Japan Exchange Group previously considered introducing such funds in 2027, but the latest reports now point to 2028.

SBI Securities and Rakuten Securities are preparing to enter the market. Nomura, Daiwa, SMBC-affiliated companies and Asset Management One are also exploring their own products. SBI Global Asset Management is considering funds based on Bitcoin and Ethereum, while Osaka Exchange is looking into launching Bitcoin futures in 2028.

Japan currently has more than 14 million cryptocurrency accounts. Around 70% of account holders earn less than ¥7 million a year. An ETF would allow investors to gain exposure to Bitcoin through a regular brokerage account without having to store the cryptocurrency themselves. Rakuten also plans to make such funds available through its mobile services.

Institutional interest is growing as well. According to a 2026 Nomura survey, 79% of respondents considering cryptocurrencies planned to invest within the next three years. Of that group, 60% intended to allocate between 2% and less than 5% of their portfolios to crypto. For 65% of respondents, cryptocurrencies are a way to diversify their investments.