As Japan continues to take significant steps regarding Bitcoin (BTC) and cryptocurrencies, the timeline for the country’s first cryptocurrency ETFs is beginning to take shape.
Accordingly, Japan is expected to approve spot cryptocurrency ETFs by 2028.
According to local news agency Nikkei Asia, Japan’s Financial Services Agency (FSA) is expected to authorize spot cryptocurrency ETFs, including Bitcoin, by 2028.
Accordingly, the Japanese FSA plans to classify cryptocurrencies as underlying assets for ETFs and as investment-eligible assets.
At this point, the agency is preparing to amend the implementing order of the Investment Funds Act.
According to the news, two of Japan’s largest financial institutions, Nomura Holdings and SBI Holdings, are reportedly developing ETF products. And the two giant companies are expected to launch the country’s first cryptocurrency ETFs to be traded on the Tokyo Stock Exchange.
If their listing on the Tokyo Stock Exchange is approved, these ETFs will become accessible to retail and institutional investors.
The launch of cryptocurrency ETFs in the US has expanded institutional investors’ access to Bitcoin and altcoins, and increased participation in the sector from pension funds, family businesses, and university foundations, including Harvard.
While Japan lags behind in the ETF race, the US and Hong Kong are planning to launch crypto ETFs in 2024, and neighboring South Korea began working on a framework for crypto ETFs this quarter.
*This is not investment advice.