Japan plans to launch a Bitcoin ETF in 2028, with individual funds likely to become the main source of inflows.

According to a report by the Nikkei, Japan is expected to launch a Bitcoin ETF as early as 2028. With the revised Financial Instruments and Exchange Act bringing crypto assets under the regulatory scope of financial products, Japan’s Financial Services Agency (FSA) plans to adjust rules related to investment trusts to allow funds and ETFs to hold crypto assets as their primary investment target, with multiple asset management firms already considering participation. Interest in crypto assets among Japanese institutional investors is on the rise: a survey by Nomura Holdings and Laser Digital shows that around 79% of institutional investors and family offices plan to invest in crypto assets over the next three years. However, unlike U.S. Bitcoin ETFs which are driven primarily by institutional capital, Japan’s institutional investor base is relatively small, and household financial assets in the country have a high cash proportion, meaning funds from individual investors are likely to be the main source of inflows. Analysts project that Japan’s Bitcoin ETF could attract up to 3 trillion yen in inflows by fiscal 2028.