Japan is expected to authorize its first crypto exchange-traded funds around 2028, according to Nikkei Asia. This move marks a significant change in the regulatory landscape for digital assets in the country.
The Financial Services Agency intends to add cryptocurrencies to the underlying assets permitted for ETFs. This regulatory change will be accompanied by enhanced measures to protect investors, according to details in the report.
Leading the initiative, major financial groups Nomura Holdings and SBI Holdings are expected to introduce Japan's first cryptocurrency ETFs. These products are expected to be listed on the Tokyo Stock Exchange following regulatory approval.
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This development is inspired by the significant achievements seen in the US market. There, spot Bitcoin ETFs have amassed approximately $115.8 billion in net assets, representing a significant portion of Bitcoin's total market value.