Key Highlights
- SBI files Japan’s first crypto ETF proposals.
- ETFs involving XRP are a first for Japan.
- Gold-Crypto hybrid ETF product offers a new model.
Japan’s crypto investment scene is changing as SBI Holdings, one of the major financial companies in the country, has filed for its first ever crypto exchange-traded funds (ETFs). The company has filed two ETFs which will include Bitcoin (BTC) and XRP. This is a big step forward as the nation is known for its early embrace of cryptocurrencies and for keeping strong regulatory controls in place.
Details of SBI Holdings’ Proposed Crypto ETFs
The financial company has filed two crypto ETF products with Japan’s Financial Services Agency (FSA), and both of them will be listed on the Tokyo Stock Exchange. The two products are as follows:
Crypto-Asset ETF: This product will be a pure crypto investment. It will directly hold and track Bitcoin (BTC) as well as XRP. This will be a proper ETF product where investors can invest in Bitcoin and XRP without actually buying and storing the assets themselves. The aim of launching this product is to provide a simple, regulated access to major crypto assets.
Digital Gold Crypto ETF: This is a hybrid product where over 51% of the investment will be made in gold ETFs and the remaining percentage of the investment will be made in crypto assets such as Bitcoin and XRP.
If the application is approved, these instruments would be the nation’s first official ETFs. This is especially important because SBI has a close partnership with Ripple and owns a big part of the company behind XRP. It also shows that the nation is taking conscious steps to quickly connect crypto with traditional finance.
Current Landscape: Crypto ETF Offerings for XRP and Bitcoin in Japan
So far, Japan has never had any crypto ETFs, not for Bitcoin, XRP, or for any other digital asset, on its own stock exchange. Even though Japanese investors can buy U.S. listed crypto ETFs through local brokers, those are still foreign products. These applications filed by the financial company are the first of their kind in Japan, making this a big step forward, but it will also have to clear new regulatory hurdles.
As the times are changing and crypto is taking a centre stage in global finance, Japan is making an effort to keep up with the trend. Even though there had been talks and test runs for crypto ETFs by asset managers and exchanges like the Osaka Exchange, there had been no approval of ETF instruments for listing.
Is Japan’s Regulatory Environment as Stringent as the US?
Japan has been traditionally stricter than the U.S. when it comes to crypto ETFs. In the past, the Financial Services Agency (FSA) had blocked domestic crypto ETFs, citing risks like high volatility, custodial issues and concerns over investor safety. As a result of this, Japan stayed behind markets like the U.S., where the SEC’s approval of Bitcoin spot ETFs in early 2024 became a major milestone worldwide.
Now, in 2025, as the times are changing, the nation is reviewing new proposals to treat digital assets more like traditional securities and ETFs. This change will not only improve how crypto is taxed but it will also open a clear and more regulated path for everyday investors and institutional players to access crypto through ETFs.
Japan’s approval process is also known to be very detail oriented. Applications have to adhere to strict rules on compliance, secure asset storage (custody), and full transparency, which is usually going beyond U.S. standard.
The FSA is aiming to strike a balance between supporting innovation and protecting the investors. The regulatory body is keeping a close eye on unregistered crypto exchanges and focuses on setting clear and strict rules. The interest in crypto is growing and if SBI’s applications are approved, 2025 could be the year Japan catches up with the world in crypto ETF adoption.
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