Japan Prepares to Embrace Institutional Bitcoin Investment

Two and a half years have passed since spot Bitcoin ETFs were approved in the United States in January 2024. The crypto asset market is undergoing a fundamental structural transformation, shifting from a 'venue for retail speculation' to an 'asset class that institutional investors incorporate as part of their portfolios.'

The assets under management in U.S. spot Bitcoin ETFs have ballooned to approximately $180 billion (around ¥29.5 trillion) as of July 2026.

An amendment to Japan's Financial Instruments and Exchange Act, which positions crypto assets under the law's regulatory scope, was passed and enacted in the House of Councillors plenary session on July 15, 2026. This sets the stage for two major reforms for individual investors: the eventual approval of domestic Bitcoin ETFs and a transition to a 20% tax rate under separate self-assessment taxation.

The 'gateway' built by Wall Street has allowed traditional financial institutions, such as pension funds, university endowments, and banks, to invest in Bitcoin within their strict internal controls and compliance frameworks. This change is reflected in the scale of capital inflows: the Bitcoin holdings of U.S. ETFs have surged from approximately 620,000 BTC immediately after approval to roughly 1.38 million BTC.

Among these, BlackRock's IBIT has grown into the world's largest Bitcoin ETF, managing approximately $49 billion (around ¥8 trillion), while Fidelity, ARK, Bitwise, and Grayscale also hold assets ranging from several billion to tens of billions of dollars.