Japan Targets 2028 Bitcoin ETF Launch Amid Regulatory Shift

Woofun AI reports that the Financial Services Agency of Japan (FSA) is restructuring investment rules to authorize a Bitcoin ETF by 2028, shifting oversight from the Payment Services Act to the Financial Instruments and Exchange Act. Finance Minister Satsuki Katayama confirmed to U.Today that the government remains on track to legalize these products, aligning crypto assets with traditional securities like stocks and bonds.

Market projections indicate this regulatory shift could attract up to 3 trillion yen in capital inflows by fiscal year 2028. Institutional adoption is already underway; the Okayama National Enterprise Pension Fund, managing 21.5 billion yen for 1,200 small and medium-sized enterprises, allocated 1% of its portfolio to crypto-asset-linked funds. Aiyu Kiguchi, the fund’s Chief Investment Officer, cited the low correlation between cryptocurrencies and the U.S. dollar as the primary driver for this diversification strategy.

Woofun AI data shows major financial institutions are actively preparing commercial structures for this emerging sector. In May, SBI Holdings unveiled a dual-asset ETF combining exposure to Bitcoin and XRP. The firm projects reaching 5 trillion yen in assets under management within three years of launch, signaling aggressive institutional positioning ahead of final regulatory clarity.

The final regulatory milestone hinges on the FSA’s approval of updated investment fund regulations. Authorities expect to complete this legal transition during legislative periods leading up to the 2028 target date, marking a definitive shift in Japan’s approach to digital asset supervision.