Japan Races to Clear Regulatory Hurdles for Bitcoin Spot ETF

Japan is gearing up to launch its first Bitcoin spot ETF by 2028, a move that could bring in up to ¥3 trillion ($18.3 billion) in capital inflows, according to market sources.

The Financial Services Agency is intensifying efforts to revise investment trust-related regulations, paving the way for asset management companies to issue spot ETFs directly tracking Bitcoin prices.

This regulatory shift strips oversight of spot cryptocurrencies from the Payment Services Act and transfers it fully to the Financial Instruments and Exchange Act, granting digital assets 'securities' status on par with stocks and bonds.

Ayumi Kikuchi, Chief Investment Officer at the Okayama National Corporate Pension Fund, notes that the low correlation between cryptocurrencies and the US dollar makes them a sound diversification strategy, citing the fund's 1% allocation to cryptocurrency-related funds.