SBI Holdings has submitted applications to Japan’s Financial Services Agency for the approval of two exchange-traded funds tracking Bitcoin and XRP.
The filings represent the first dual-asset spot crypto ETF proposal in the country and arrive shortly after the regulator opened discussions around reclassifying digital assets as financial instruments under the Financial Instruments and Exchange Act.
The products, detailed in SBI’s investor materials on August 1, include a crypto-asset-only ETF comprising Bitcoin and XRP, as well as a blended offering combining digital assets and gold. The former fund would allow for direct allocation to both tokens under a single wrapper, while the latter proposes exposure to Bitcoin and XRP, capped at 49%, with gold comprising the majority.
SBI’s move follows its formal joint venture with Franklin Templeton in July. The JV aims to launch a series of digital asset investment vehicles and bring traditional asset management practices into the crypto space.
Franklin Templeton, which manages more than ¥300 trillion globally and operates over 100 ETF products, will provide the infrastructure and compliance experience for product rollout. Per SBI’s statements, the crypto ETF suite will eventually cover Bitcoin, Ethereum, and XRP, contingent on approval and evolving regulations.
The regulatory backdrop is undergoing revision. In late June, the FSA published a discussion paper proposing a unified 20% tax on crypto gains and recognizing crypto ETFs as regulated financial products.
The proposed reforms address long-standing deterrents in Japan’s crypto market, such as the tax code’s treatment of crypto gains as miscellaneous income and the lack of formal recognition for crypto investment products. The policy shift is expected to enable listing crypto ETFs under existing securities laws, pending further legislative review and implementation timetables.
SBI’s ETF initiative aligns with its broader strategic exposure to XRP. The firm is one of Ripple’s largest outside shareholders and operates remittance corridors across Asia using the token through its SBI Remit subsidiary. Including XRP in a regulated ETF framework could further institutionalize the asset in Japan, a market where it has historically enjoyed favorable treatment.
The applications arrive during a period of cooling demand for crypto ETFs globally. Spot Bitcoin ETFs recorded over $1 billion in net outflows over the past week. While Japan’s domestic capital base remains sizable, questions remain around whether sufficient institutional appetite exists for multi-asset crypto funds. XRP’s liquidity is notably thinner than Bitcoin’s, raising concerns for market makers tasked with tracking fund NAVs in real time.
SBI and Franklin Templeton have not confirmed a projected timeline for product launch. While regulatory proposals have been introduced, the final approval process remains subject to parliamentary scheduling and policy finalization, particularly regarding the tax code changes. If successful, Japan would become the first major economy to approve a spot XRP ETF.
The FSA is now reviewing the ETF filings as part of its evolving stance on digital asset oversight. The market is awaiting formal guidance on crypto custody standards, price feed integrity, and potential leverage caps before further products are approved. SBI’s ETF proposals may test how quickly Japan’s legislative environment can adapt to accommodate institutional crypto demand.
