Japan eyes 2028 launch for first Bitcoin ETFs

The Financial Services Agency is revising investment-fund rules following legislative amendments that bring crypto assets under the Financial Instruments and Exchange Act. While this legal realignment is a critical step, fund managers still require a finalized regulatory framework and updated investment-trust guidelines before products can officially hit the market. Estimates suggest these ETFs could attract up to ¥3 trillion in inflows by 2028 as the nation shifts its stance on crypto integration.

Major domestic financial players, including SBI Securities, Rakuten Securities, and Nomura, are already positioning themselves for the change. Unlike the U.S. market, which is heavily driven by institutional capital, Japan’s potential ETF landscape is expected to rely on retail demand. With households holding roughly half of their wealth in cash and deposits, brokerages are tailoring products for smartphone-based investment platforms to capture this liquidity. Meanwhile, early institutional experiments are emerging; the National Business Pension Fund in Okayama has already begun testing small crypto allocations to diversify its portfolio, citing the asset's low correlation with the U.S. dollar.