Cryptocurrency exchange-traded funds could begin trading in Japan as early as 2028 as regulators move closer to recognising digital assets as eligible ETF components.
Nikkei reported that Japan’s Financial Services Agency is preparing to classify cryptocurrencies as specified assets under the Investment Trust Act.
The change would formally allow asset managers to structure and list crypto-linked ETFs on domestic exchanges.
Industry estimates cited by Nikkei suggest Japan’s crypto ETF market could reach 1 trillion yen, or about $6.4 billion, in assets.
A 2028 launch would place Japan several years behind the United States, where spot Bitcoin (CRYPTO:BTC) ETFs began trading in January 2024.
US-listed spot Bitcoin ETFs now collectively hold around $116 billion in assets, according to market data.
Spot Ether (CRYPTO:ETH) ETFs, which launched later, have attracted roughly $18 billion in assets to date.
Reuters previously reported that Japanese rule changes could take effect earlier, possibly in 2026 or 2027, following parliamentary approval.
The Financial Services Agency has not publicly confirmed a specific timeline for ETF approval.