Japan Moves Toward Crypto ETFs as 2028 Launch Comes Into View: Is Asia Finally Awakening?

Japan’s policy shift fits a broader regional trend. Hong Kong launched its own crypto ETFs in 2024. Those funds offer exposure to Bitcoin, Ether, and Solana through regulated vehicles.

Hong Kong’s ETFs allow in-kind subscriptions and redemptions. That structure lets investors exchange underlying assets directly for ETF shares. The design differs from US products but targets similar institutional demand.

South Korea also advances its framework through the proposed Digital Asset Basic Act. Lawmakers expect final legislation in the first quarter of this year. The law would support spot crypto ETFs and regulated stablecoins.

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Japan’s finance minister, Satsuki Katayama, described 2026 as the country’s first year of digital integration. Officials want financial institutions to support crypto alongside traditional assets. A KPMG Japan executive earlier suggested a bitcoin ETF would not arrive before 2027.

Estimates suggest Japan’s crypto ETFs could grow to one trillion yen, or about $6.4 billion, after launch. Meanwhile, pension funds and government-linked investors already add bitcoin to portfolios. Could regulated ETFs accelerate institutional demand once Japan opens that door?