The Financial Services Agency of Japan is considering including digital assets in the list of eligible instruments for the spot crypto ETF. As reported by Nikkei this Monday, regulatory approval could be finalized by 2028, which would end the current ban on these investment products in the Asian nation.
This new timeline extends previous market expectations, which suggested a possible launch by the year 2027. However, the move responds to a growing demand from local investors to access digital financial assets. In fact, recent studies indicate that 60% of Japanese investors wish to participate in the crypto ecosystem through regulated structures.
In this context, the Finance Minister, Satsuki Katayama, has described 2026 as the “digital year” for the country. She highlighted that exchange-traded fund structures have served as an effective tool against inflation in the West. Therefore, the Japanese government seeks to replicate these efforts to strengthen domestic capital markets in the near future.
Financial giants lead the way toward listing on the Tokyo Stock Exchange
On the other hand, high-caliber institutions such as Nomura Holdings and SBI Holdings are already developing specific products for approval. These companies expect to list their funds on the Tokyo Stock Exchange to facilitate the trading of digital assets on a large scale. The intention is for investors to be able to trade crypto-assets similarly to how they trade stocks or gold.
Likewise, SBI Holdings has confirmed that it has advanced plans to launch investment vehicles linked to Bitcoin and XRP. Among its proposals, a hybrid fund that would combine precious metals with modern digital asset technology stands out. This strategy seeks to attract institutional profiles that require a robust legal framework for their capital placements.
How will Japan position itself against the US and Hong Kong markets?
Because jurisdictions such as the United States and Hong Kong authorized similar products in 2024, Japan faces considerable competitive pressure. The implementation of the spot crypto ETF would allow the country to regain ground in global financial innovation. In this way, the nation seeks to avoid capital flight to foreign platforms that already offer direct exposure to the main digital currencies.
Finally, the integration of these funds into traditional exchanges represents a fundamental step for the maturation of the Japanese financial sector. It is expected that regulatory clarity will encourage greater participation of pension funds in the coming years. Meanwhile, local financial entities continue to prepare their technical infrastructure to ensure a safe transition to the digital market.
