Japan Could Approve First Spot Bitcoin ETF by 2028 as New Crypto Law Kicks In

Japan may launch its first spot Bitcoin exchange traded fund as early as 2028, following a new law that officially classifies cryptocurrencies as financial products, according to a report from Nihon Keizai Shimbun.

New Legislation Opens Door for Regulated Products

The law, enacted July 15, reclassifies crypto under Japan’s financial regulatory framework, prompting the Financial Services Agency to begin revising investment trust rules. This shift is seen as a key step toward allowing asset managers to offer spot Bitcoin ETFs that track Bitcoin’s price directly, rather than through futures contracts.

Billions in Potential Inflows Expected

Major Japanese asset managers are already reviewing possible ETF launches. Industry estimates suggest Japanese Bitcoin ETFs could attract up to 3 trillion yen, or roughly $20.3 billion, by the end of fiscal 2028. If approved, Japan would join countries like the United States, where spot Bitcoin ETFs launched in January 2024 and have since drawn billions in assets.

Regulatory Process Still Unfolding

The Financial Services Agency’s rule revisions are expected to take several months, followed by public comment and individual ETF applications from asset managers. Japan’s approach places strong emphasis on investor protection, bringing crypto under existing securities rules covering disclosure, anti-fraud measures and custody requirements.