Japanese Bitcoin ETF Could Launch in 2027, Says KPMG Executive

Japan’s cryptocurrency investors might face a longer wait for a domestic Bitcoin ETF than initially expected. A KPMG Japan executive suggests that the earliest likely approval could come in spring 2027. Although the concept of a Japanese Bitcoin ETF has been discussed for years, regulatory hurdles and political caution are slowing progress.

Regulatory Barriers To ETF Approval

Kenji Hoki, head of KPMG Japan’s web3 and fintech division, said at the WebX2025 summit in Tokyo that approving an ETF in Japan is difficult under current laws. The Investment Trust Act limits the assets that domestic investment trusts can hold, so funds cannot directly buy cryptoassets like Bitcoin.

Hoki also noted that supervisory rules make things more complicated. Even if policymakers are interested, progress has been slow because the financial industry has not reached an agreement. Regulators have been cautious without wider support.

The process follows Japan’s usual legislative schedule. Tax reform requests are made at the start of the year. If a Bitcoin ETF request is submitted in early 2026, lawmakers could review it by March or April, pushing implementation to spring 2027 at the earliest. Hoki said the government could speed things up by changing supervisory rules if there is political will.

Japan Lags Behind Global Trends

As Japan debates its position, other regions are moving ahead. Billions have already been invested in U.S. spot Bitcoin ETFs, reshaping institutional crypto holdings. Hong Kong and Singapore are also making it easier for investors to access digital assets.

Tomoya Asakura, CEO of SBI Global Asset Management, warned that a 2027 launch could be too late. U.S. spot Bitcoin ETFs drew over $15 billion in just a few months, showing how fast other markets are advancing.

Japan has said it wants to use crypto for citizen wealth-building, but implementation is behind. If approvals take another two years, Japanese investors could be at a disadvantage. One option experts suggest is giving Japanese investors access to U.S.-listed ETFs through domestic investment trusts, if rules are updated.

Growing Interest Among Japanese Investors

Interest in cryptocurrencies among Japanese investors continues to grow, even with regulatory delays. Hajime Ikeda of Nomura Holdings highlighted a survey showing more than 60% of Japanese investors are eager to gain crypto exposure. This level of demand could prompt regulators to move faster to accommodate pressure from both institutional and retail markets.

Officials are starting to respond to these changes. Finance Minister Katsunobu Kato suggested that digital assets might help diversify Tokyo’s investment landscape, while cautioning that volatility and careful risk management remain essential before broader adoption.

This situation creates a careful balancing act. Regulators want to maintain market stability but may frustrate investors who see opportunities being captured elsewhere. Thus, there's a growing impatience among retail traders seeking clearer paths to regulated Bitcoin exposure.

What Does It Mean?

The path to a Japanese Bitcoin ETF is not easy or quick. If the current plan continues, 2027 is the likely launch date. But with global markets moving fast, Japan faces pressure to act sooner. Policymakers must choose between a careful, step-by-step approach or faster changes that could bring ETFs to market earlier.

The wait may be frustrating for investors, but it reflects Japan’s financial style, which is cautious, deliberate, and risk-aware. The results of this strategy will become clear in the years ahead.