BI Group, a Japanese financial firm has just confirmed that its asset management arm is getting ready to launch the Japan Bitcoin ETF and Ethereum ETF, along with other crypto investment trusts as soon as the government finalizes the plans for taxing and regulating these new investment products.
This is being developed through SBI’s joint venture with Franklin Templeton.
If approved, the products could connect crypto exposure directly to one of the world’s largest household savings markets through traditional brokerage accounts and tax-favored investment systems.
SBI Builds the Groundwork for Japan Bitcoin ETFs
SBI has already done much of the groundwork before formal approval arrives.
The company said it plans to bring out spot Bitcoin and Ethereum ETFs, as well as other crypto investment trusts once the regulatory changes are in place.
SBI Global Asset Management had an impressive $75.5 billion in assets under management back in March 2026, and the wider SBI securities business had more than $415 billion under its belt. SBI also holds 51% of its joint venture with Franklin Templeton.
That distribution network matters because it already serves millions of Japanese retail investors through brokerage platforms, mutual funds, and retirement-style investment products.
SBI is targeting a three year crypto ETF AUM of roughly $31.5 billion once the products are up and running.
Japan’s Financial Services Agency is expected to allow crypto ETF trading on the Tokyo Stock Exchange by 2028, while separate crypto taxation reforms could arrive as early as 2027.
Why Japan’s Household Savings Matter
The scale of Japan’s household capital pool is the main reason the Japan Bitcoin ETF story is drawing attention globally.
The Japanese government has been working to encourage citizens to put their savings into more productive investments through initiatives like Japan’s tax-advantaged savings scheme, the NISA.
By the end of 2025, over 28 million NISA accounts had been opened, with almost half a trillion dollars of investment flowing into them.
In order to reach SBI’s $31.5 billion target , the company will only need 0.21% of Japan’s total household financial assets to be moved into crypto funds.
As it stands, Japan’s domestic crypto participation is already big. The country reportedly has around 14 million crypto accounts in the country, with more than $31.5 billion in assets under management.
Chainalysis data also shows Japan’s on-chain value received jumped by 120% between June 2024 and June 2025, the strongest growth in the Asia-Pacific markets .
If SBI can get its ETFs to market , it could potentially redirect that demand from stand-alone crypto exchanges into the more regulated brokerage platforms.
Tax Reform Could Decide Everything
Regulation and taxation are still the biggest hurdles SBI faces before the Japan Bitcoin ETF launch.
Right now, Japan’s crypto gains are taxed at rates that reach as high as 55%, higher than the tax rate for traditional stock investments.
Proposed reforms aim to change this by taxing crypto gains at a flat 20% rate, making it more attractive for conservative investors to put their money in Bitcoin and Ethereum funds.
If that happens , the whole dynamic of Japan’s crypto market is likely to change.
Another major question is that, will crypto ETFs and investment trusts qualify for NISA-style tax advantages.
If crypto products get access to NISAs, then exposure to Bitcoin could become a way for Japanese households to invest through the long-term savings channels they already use for equity index funds and retirement planning.
Without that access, adoption might stay concentrated among the existing crypto investors.
Regulators still need to sort out the custody rules, benchmark standards, liquidity requirements, and market maker frameworks before anything gets approved.
Japan Could Become Asia’s Biggest Regulated Bitcoin Market
Japan would not be entering an empty market. Hong Kong launched Asia’s first spot Bitcoin and Ethereum ETFs back in April 2024 and already has a framework for regulated crypto investment products in place.
But Japan might have a stronger long term advantage because of its massive domestic savings base and well-established brokerage culture.
SBI and Rakuten are already reportedly developing crypto investment trusts internally, while firms linked to Nomura, Daiwa, and Mizuho are also considering entry plans.
If Japan successfully combines ETF approval, lower taxes, and broad brokerage distribution, the country could become one of Bitcoin’s largest regulated demand channels during Asia trading hours.
There’s still a chance that matters could get delayed. If ETF approvals slip beyond 2028 or crypto funds don’t get a spot in the NISA, then adoption could end up falling short of SBI’s projections and staying stuck with the existing crypto traders.
Conclusion
SBI and its partners are trying to position Bitcoin and Ethereum exposure inside Japan’s existing investment infrastructure, targeting the millions of households who already use brokerage accounts and tax-favoured savings systems.
The potential is huge because even a small reallocation from Japan’s cash-heavy savings market could create billions in regulated crypto inflows.
For all this to eventually happen, it now depends on the tax changes, the ETF approval timeline, and whether regulators are willing to let crypto products join the regular retail investment channels.
Glossary
Bitcoin ETF: A fund that tracks the price of Bitcoin.
NISA: Japan’s tax-advantaged retail investment account system.
AUM: Assets under management.
Spot ETF: A fund that is backed by the actual asset and not futures contracts.
Frequently Asked Questions About Japan Bitcoin ETF
When will the Japan Bitcoin ETF be approved?
Japan’s Financial Services Agency is currently aiming for a 2028 target date for crypto ETF trading approvals.
Which companies are involved in the Japan Bitcoin ETF push ?
SBI Group and Franklin Templeton are leading the development effort.
Why does Japan matter for crypto ETFs?
Japan has one of the world’s largest household savings pools and millions of active brokerage investors.
What tax changes are being discussed?
Japan may reduce crypto taxation from rates as high as 55% to a flat 20% similar to stock investments.
References
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