Japan Inches Closer to Launching First Bitcoin ETF by 2028

The Japanese government is moving closer to allowing its first Bitcoin ETF by 2028. The Financial Services Agency (FSA) is revising the Financial Instruments and Exchange Act, which will transfer supervision of spot crypto assets from the Payment Services Act.

This change follows Finance Minister Satsuki Katayama's confirmation that Japan remains on track to legalize cryptocurrency ETFs. According to official data, the new legal framework will treat crypto assets similarly to traditional securities such as stocks and bonds.

The regulatory shift is expected to attract significant investment, with industry reports projecting up to 3 trillion yen in capital inflows by fiscal year 2028. The Okayama National Enterprise Pension Fund has already allocated an initial 1% of its portfolio, worth 215 million yen, to crypto-asset-linked funds.

SBI Holdings is preparing a dual-exposure fund for Bitcoin and XRP. The company aims to reach 5 trillion yen in assets under management within the first three years following the launch. Industry reports suggest additional fund managers are studying similar investment vehicles ahead of final regulations.