The earliest window for Japan's first spot Bitcoin ETF to be listed may be in 2028

Japanese regulatory authorities are advancing the adjustment of the legal framework for digital asset investment. A spot Bitcoin ETF may be approved for listing as early as 2028, but the timeline still depends on the progress of regulation, product review, and tax reform.

On July 15, the Japanese Diet approved the transfer of Bitcoin and approximately 105 other crypto assets from the Payment Services Act framework to the Financial Instruments and Exchange Act, removing a major legal obstacle for related funds to be listed on the Tokyo Stock Exchange. Major Japanese financial groups such as SBI Holdings and Nomura are preparing digital asset products. Japan also plans to adjust the crypto asset tax system from a maximum miscellaneous income tax of 55% to a separate reporting tax system of approximately 20.315%.