Japan Targets 2028 for First Spot Bitcoin ETF Launch
Japan is preparing to launch its first spot Bitcoin ETF by 2028, according to local reports. The country's Financial Services Agency (FSA) is updating investment fund rules following a new law that recognizes cryptocurrencies as financial assets.
The new law gives Bitcoin, Ethereum, XRP, and other digital assets a clearer legal status, which could attract more investors into the market. Japan is also planning to cut crypto taxes from 55% to 20%, a move many experts believe could bring even more investors into the market.
According to estimates from domestic financial institutions, crypto investment trusts, including Bitcoin ETFs, could attract up to JPY 3 trillion (around $19.5 billion) by the end of fiscal 2028. This would make Japan's ETF market one of the largest in Asia once the rules are finalized.
One reason for this is portfolio diversification. Aiyu Kiguchi, Executive Director of Investment Management at the National Business Pension Fund, said that his pension fund has started investing in crypto funds managed by overseas hedge funds because Bitcoin's price movements have a low correlation with the U.S. dollar.