Japan Moves Closer to Approving Its First Crypto ETFs

Japan is moving closer to approving its first crypto exchange-traded funds (ETFs). As revealed, regulators are expected to greenlight them as early as 2028. 

By allowing crypto ETFs, Japan wants to support innovation while still protecting investors. The move would also help the country keep up with changes happening in global financial markets.

Japan Plans Strong Rules and Big Bank Support for Crypto ETFs

Japan’s Financial Services Agency (FSA) plans to treat cryptocurrencies as base assets for ETFs. This would put digital assets on the same level as traditional assets already used in ETFs.

At the same time, regulators want to tighten investor protection rules. This includes clear oversight, full disclosures, and strong risk controls. It shows Japan is taking a careful and well-planned approach, not rushing the process.

Two major financial groups, Nomura Holdings and SBI Holdings, are expected to lead the launch of Japan’s first crypto ETFs. These ETFs would likely be listed on the Tokyo Stock Exchange, allowing investors to buy them through trusted and regulated channels.

The involvement of well-known financial institutions shows growing confidence in digital assets within Japan’s traditional finance system.

U.S. Crypto ETF Success Sets the Example

The planned move follows the strong performance of crypto ETFs in the United States. Spot Bitcoin ETFs there have gathered more than $100 billion in net assets, in spite of heavy withdrawals from the funds. This figure represents a meaningful share of Bitcoin’s total market value. 

The U.S. experience shows how regulated products can bring digital assets into mainstream investment portfolios. At the same time, U.S. regulators have recently simplified the approval process for digital asset products. 

As a result, issuers have launched spot ETFs tied to several smaller cryptocurrencies, with more expected to follow. This broader range of products highlights how fast the market is evolving once clear rules are in place.

Asia Moves Forward With Crypto ETFs and Stablecoins

Japan is not the only country making this move. Its neighboring country Hong Kong already introduced its own crypto ETFs, giving investors access to major digital assets. These ETFs also let investors swap the actual assets directly for ETF shares, which gives more flexibility.

South Korea is also moving ahead. Lawmakers are working on the Digital Asset Basic Act, which is expected to clear the way for the country’s first spot crypto ETFs once the law is finalized.

Beyond ETFs, Japan, Hong Kong, and South Korea all want to bring regulated stablecoins into everyday use. Japan approved its first yen-linked stablecoin last year. Hong Kong is getting ready to issue licenses under a new stablecoin system. 

South Korea, on the other hand, plans to support a won-based stablecoin market through new laws. Together, these steps aim to connect digital currencies more closely with real-world payments and financial services.