Woofun AI reports that Japan intends to introduce a Bitcoin ETF by 2028, following amendments to the Financial Instruments and Exchange Act that classify cryptocurrency as a regulated financial product. The Financial Services Agency will modify investment trust regulations to permit funds and ETFs to hold cryptocurrency as primary assets, with several asset managers preparing for participation.

While institutional interest is rising, with 79% of surveyed firms planning crypto allocation within three years, the domestic institutional base remains smaller than in the U.S. Consequently, retail capital is expected to serve as the primary inflow source. Analysts project that a Japanese Bitcoin ETF could draw up to ¥30 trillion in assets by the 2028 fiscal year.