- Osaka Exchange plans to offer Bitcoin futures by 2028 for institutional hedging needs.
- Japan’s FSA aims to allow crypto investment trusts through regulatory reforms.
- Japan could join major crypto derivatives hubs as ETF and futures markets expand.
Japan’s financial markets are moving closer to offering regulated cryptocurrency derivatives, with the Osaka Exchange (OSE) confirming plans to introduce Bitcoin futures by 2028. The proposal comes as Japanese regulators work on changes that could expand the range of investment products tied to digital assets, creating a new framework for institutional participation in the crypto market.
The planned launch was disclosed by OSE President Akira Tagaya in an interview with Nikkei Financial. According to Tagaya, the exchange is preparing a Bitcoin futures product created to meet the hedging needs of institutional investors that gain exposure to Bitcoin through exchange-traded funds (ETFs).
Regulatory Changes Support New Products
The proposed futures launch is linked to regulatory reforms under consideration by Japan’s Financial Services Agency (FSA). The regulator plans to revise the Investment Trust Act enforcement order by 2028 to include cryptocurrencies among the “specified assets” that investment trusts can hold.
The change would allow asset managers to establish investment trusts containing digital assets for both retail and institutional investors. Discussions within the FSA and the Financial System Council have centered on integrating cryptocurrencies into Japan’s investment product framework while upholding disclosure standards and investor protection requirements.
The regulatory review follows earlier comments from Japan Exchange Group (JPX) leadership regarding market interest in cryptocurrency-related investment products. JPX Chief Executive Officer Hiromi Yamaji previously stated that asset management firms had shown interest in crypto ETFs, although legislative and tax considerations remained under review.
ETF Market Expectations Continue to Grow
The expected expansion of crypto investment products has drawn attention from major financial institutions. According to earlier reports, firms including Nomura Holdings and SBI Holdings could be among the first asset managers to pursue crypto ETFs on the Tokyo Stock Exchange once approval is granted.
Analysts cited in those reports estimated that Japan’s crypto ETF market could reach approximately ¥1 trillion, equivalent to about $6.4 billion.
Japan Joins Expanding Global Derivatives Market
OSE’s plans emerge as regulated cryptocurrency derivatives continue to expand internationally. CME Group introduced Bitcoin futures in December 2017 and has since become a major venue for institutional hedging activity.
According to CME data, average daily crypto derivatives volume reached 198,000 contracts in the first quarter of 2025, representing approximately $11.3 billion in notional value, while average open interest rose to 251,000 contracts worth about $21.8 billion.
Related: Japan’s Largest Banks Target Joint Stablecoin Launch by 2027
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