Japan’s Finance Minister Satsuki Katayama has made a landmark announcement that the government is moving forward with legalizing cryptocurrency exchange-traded funds (ETFs). Speaking at the “Open QUICK 2026” seminar hosted by financial information service QUICK on July 10, Katayama confirmed that crypto ETFs could debut on Japanese exchanges as early as next year, responding to the success of similar products in overseas markets like the United States.
This announcement comes on the heels of a significant regulatory overhaul. Japan’s House of Representatives recently passed a revision to move the oversight of spot cryptocurrencies from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA). This effectively elevates crypto assets to fully regulated “financial products” that will be treated the same as traditional stocks and bonds under Japanese law. The regulatory shift creates a clear legal framework for ETF issuers to work within.
Japanese financial titan SBI Holdings has already positioned itself at the forefront of this emerging market. In May, SBI filed proposals to launch a dual-asset ETF providing regulated exposure to both Bitcoin and XRP — the two cryptocurrencies most closely associated with SBI’s business strategy. Notably, SBI has maintained one of the longest institutional relationships with Ripple, the company behind XRP. Beyond the dual-asset product, SBI also proposed a hybrid investment trust that would allocate 51% to gold-based ETFs and 49% to crypto-asset ETFs, designed to attract both conservative institutional and retail investors who want diversified exposure.
SBI has set ambitious targets for these products, aiming to secure roughly ¥5 trillion (approximately $32 billion) in assets under management within three years of launch. The financial behemoth wants to secure a first-mover advantage over other major Japanese financial groups such as Nomura and Rakuten Securities, which could also enter the ETF space. The broader implications for global crypto markets are significant — Japan has long been one of the most crypto-friendly developed nations, and the legalization of ETFs there could trigger a domino effect across Asia, with South Korea and Hong Kong potentially following suit.
Market reaction to the news was positive. Bitcoin edged higher on the announcement, while XRP outperformed the broader market on the SBI dual-ETF news. Analysts view this as a milestone moment that could reshape the Asian cryptocurrency landscape and accelerate institutional adoption across the region.