Japan could approve its first Bitcoin exchange-traded fund as early as 2028 as regulators prepare rules that would allow investment trusts and ETFs to hold crypto assets directly.

A July 23 Nikkei report said Japan's Financial Services Agency plans to revise investment-fund rules after lawmakers approved amendments that bring crypto assets under the Financial Instruments and Exchange Act framework. The shift moves Japan closer to treating crypto as a financial investment product, rather than regulating it primarily as a payment asset. The change marks a notable evolution for a country that built much of its current crypto oversight regime in response to major exchange failures, including the 2014 Mt. Gox collapse and the 2018 Coincheck hack, both of which prompted stricter licensing and custodial requirements.

The legal change, however, does not allow a Bitcoin ETF to launch immediately. Japan still needs detailed rules and revisions to its investment-trust framework before fund managers can offer products that hold crypto as a primary investment target. FSA materials confirm that crypto regulation is moving from the Payment Services Act into the Financial Instruments and Exchange Act, alongside new disclosure and market conduct requirements.

ビットコインETF、日本は機関投資家より個人偏重か ３兆円流入試算も — 日本経済新聞 電子版（日経電子版） (@nikkei) July 22, 2026

ビットコインETF、日本は機関投資家より個人偏重か ３兆円流入試算も

As crypto.news reported on July 15, Japan has passed legislation that creates a pathway for domestic crypto ETFs, although each product will still need regulatory approval. An earlier report said Japan Exchange Group was considering listings as early as 2027, while the latest Nikkei report points to 2028 as a possible launch date.

JPX chief executive Hiroki Yamamichi previously said an ETF "can be done anytime once the legal framework is in place and the tax treatment is clarified." Tax treatment remains a key open question: Japan currently classifies crypto gains as miscellaneous income, subject to progressive rates that can reach up to 55% including local taxes — significantly higher than the 20.315% flat rate applied to stock and ETF capital gains. Any harmonization of crypto tax rates with securities treatment would directly affect the attractiveness of a Bitcoin ETF wrapper for individual investors.

Financial groups prepare for Bitcoin ETFs

Several of Japan's largest financial firms are studying products that could enter the market once regulators finalize the rules. SBI Securities and Rakuten Securities are preparing crypto investment trusts through their own groups, according to previous reporting. Nomura, Daiwa, SMBC-linked firms and Asset Management One are also examining possible products.

The planned market may extend beyond Bitcoin ETFs. SBI Global Asset Management has considered funds focused on liquid crypto assets such as Bitcoin and Ethereum. Osaka Exchange has also discussed launching Bitcoin futures in 2028 if spot ETFs become legal.

Those preparations indicate that traditional financial firms are working on potential products before regulators complete the final framework.

Institutional interest is also increasing. Nomura Holdings' 2026 survey found that 79% of respondents considering crypto investment over the next three years planned to invest. Among those respondents, 60% expected to allocate between 2% and less than 5% of their portfolios. The survey also found that 65% viewed crypto assets as a way to diversify their investments.

Retail investors could drive demand

Japan's Bitcoin ETF market may develop differently from the U.S. market, where institutional investors have become major participants in spot Bitcoin ETFs since their launch in January 2024. Hong Kong also approved spot Bitcoin and Ethereum ETFs in April 2024, giving Asia an early foothold in regulated crypto fund products. Japan's 2028 timeline would place its domestic ETF market several years behind both jurisdictions. Japan has a smaller pool of institutions making large crypto allocations, while households continue to hold a large share of their financial wealth in cash and deposits. Bank of Japan data has put cash and deposits at around half of household financial assets.

That structure could make individual investors a major source of demand. The July 23 Nikkei report estimated that Japanese Bitcoin ETFs could attract as much as ¥3 trillion by fiscal 2028.

The FSA has also reported more than 14 million domestic crypto accounts, while about 70% of account holders earn less than ¥7 million annually. A regulated ETF could allow investors to gain Bitcoin exposure through securities accounts without directly managing crypto wallets.

The same retail focus is visible among financial groups preparing new products. Rakuten plans to make crypto investment trusts available through smartphone services, while other brokerages are studying products that could fit into existing investment platforms used by individual customers.

Pension interest adds another route for exposure

Institutional adoption remains limited, but some Japanese pension managers have started testing small crypto allocations. The National Business Pension Fund in Okayama, which represents about 1,200 small and medium-sized businesses, plans to allocate about 1% of its assets to crypto-related funds during fiscal 2026.

Aiyu Kiguchi, the fund's executive director of investment management, explained the diversification strategy by saying, "It's because its price movements have a low correlation with the U.S. dollar."

The fund manages about ¥21.5 billion and plans to gain exposure through funds managed by major overseas hedge funds, rather than buying crypto assets directly.

The move comes as broader investor interest grows. Nomura's survey found stronger demand for crypto as a diversification tool, while financial firms continue preparing investment trusts and possible ETFs. Japan Exchange Group has also said asset managers are showing interest in crypto-linked products.

Japan's next steps will depend on how quickly the FSA completes its investment-trust rules and how exchanges set listing requirements. Tax reform, which the JPX chief identified as a prerequisite, will also shape how attractive a Bitcoin ETF is to retail investors currently facing some of the highest crypto tax rates among developed markets. Regulatory changes, asset-manager preparations and growing investor interest have moved the country closer to a domestic Bitcoin ETF market. The latest reported timeline places the first possible launch as early as 2028, with retail investors potentially accounting for a large share of demand.