Japan to approve its first crypto ETFs in 2028: report

Tokyo, Japan – Sources close to the Financial Services Agency (FSA) indicate that Japan is on track to approve its first set of cryptocurrency Exchange-Traded Funds (ETFs) by the third quarter of 2028. This landmark move, long anticipated by the global digital asset community, would position Japan as the first major East Asian economy to offer regulated spot crypto investment products to retail and institutional investors.

The approval process, which has been under rigorous review for several years, is expected to prioritize products based on Bitcoin (BTC) and Ethereum (ETH), focusing initially on spot market exposure rather than derivatives. Regulators have reportedly cleared outstanding hurdles concerning custody standards, investor protection frameworks, and enhanced Anti-Money Laundering (AML) protocols, paving the way for institutional adoption.

Market analysts predict a significant inflow of capital once the ETFs launch, potentially reaching hundreds of billions of yen within the first year. Major Japanese financial firms, including Nomura Holdings and SBI Group, are reportedly finalizing partnerships with established crypto custodians to submit their applications promptly following the FSA’s official guideline release, expected in early 2028. This regulatory milestone underscores Japan’s commitment to fostering innovation while maintaining robust financial stability.

Source: Japan to approve its first crypto ETFs in 2028: report