Japan Could Align With US, Hong Kong on Spot Crypto ETFs by 2028
could view its first cryptocurrency platform-traded funds (ETFs) listed as ahead as 2028, a move that would significantly lower the barrier for retail investors viewking exposure to digital assets.
The development was reported by , citing regulatory plans currently under review by the country’s Financial Services Agency (FSA).
According to the report, the FSA intends to revise ETF rules by adding cryptocurrencies to the list of approved underlying assets, while simultaneously proposing stricter investor protection measures.
If adopted, the changes would allow funds tracking assets such as BTC to trade on the Tokyo Stock platform, offering investors access through traditional brokerage accounts rather than digital wallets.
Japan has so far limited direct to platforms that require users to manage Secret keys, a process viewed as complex and risky for many retail investors. ETFs, which trade like stocks, would simplify access and align Japan’s market structure with other major financial centers.
Institutions Position for Entry as Global Crypto Adoption Grows
Major Japanese financial groups, including Nomura Holdings and SBI Holdings, are reportedly preparing to launch the country’s first crypto ETFs once regulatory approval is secured.
Any proposed products would still require listing approval from the Tokyo Stock platform, underscoring Japan’s cautious approach to market entry.
The move comes as cryptocurrencies increasingly gain recognition as an alternative asset class among institutional investors.
While price volatility remains a concern, the broader crypto market has expanded rapidly, with global market capitalization rising to about $3 trillion over the past three years.
Still, it remains unclear how strong demand for crypto-linked ETFs would be across Asian markets. The performance of spot BTC ETFs in the region has so far lagged significantly behind the United States, raising questions about whether Japan would view comparable investor interest.
Data from shows that collectively hold about $115.88 billion in net assets, reflecting deep institutional and retail participation. In contrast, Hong Kong’s spot BTC ETFs — approved in 2024 — have recorded far more modest uptake, with total net asset value standing at roughly $235.41 million at the time of reporting, alongside relatively thin trading volumes.
This gap in performance raises questions about whether Japan would follow Hong Kong’s muted uptake or view stronger participation from domestic investors. Although some asset managers project that Japanese crypto ETFs could eventually reach 1 trillion yen ($6.4 billion) in assets, it remains unclear whether demand would be sufficient to support those expectations, especially in the initial phase later than approval.
