SBI ETF denial ignites regulatory clarity drive in Japan’s crypto industry

SBI ETF denial has quickly become the headline dominating Japan’s crypto market today, as financial giant SBI Holdings publicly shut down reports that it had filed for a Bitcoin–XRP dual exchange-traded fund (ETF).

The company’s statement has poured cold water on speculation that Japan might soon see its first crypto-backed ETF.

The SBI ETF denial came after media outlets reported Wednesday that SBI had submitted applications for two products — a dual gold and crypto ETF, and a Bitcoin–XRP ETF.

The rumors cited the company’s latest earnings report, but as Cointelegraph revealed, no such filings were confirmed in the report itself.

SBI ETF denial clarifies “planning stage” status

Speaking to Cointelegraph, an SBI Holdings representative issued a firm rebuttal:

“Contrary to some media reports, we have not filed any applications with the authority to form an ETF related to crypto assets,” the spokesperson said. “It is only at the planning stage.”

This SBI ETF denial underscores that while the idea is being explored, the process is still in its infancy. The company’s cautious tone reflects Japan’s ongoing regulatory overhaul for digital assets.

Japan’s Financial Services Agency (FSA) on June 24 proposed recognizing certain crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA) — the same framework governing traditional securities.

Until these proposals are finalized, SBI Holdings says it won’t file any ETF applications.

“In Japan, ETFs that incorporate crypto assets are expected to be approved in a way that aligns with the responses of the financial authorities and tax authorities,” the spokesperson added. “Therefore, the filing will be done after these legal revisions have been made.”

This latest SBI ETF denial reflects how closely crypto innovation in Japan is tied to the pace of regulatory change.

No timeline for a bitcoin–XRP ETF

Despite market interest, SBI Holdings has confirmed there is no timeline yet for submitting a crypto ETF application.

When the time comes, it will be handled by SBI Global Asset Management, a subsidiary specializing in investment products.

While the SBI ETF denial may have dampened immediate excitement, the company stressed it remains committed to eventually bringing crypto ETFs to the Japanese market. Retail investors, in particular, are expected to be the first target audience.

“We advocate for and promote the democratization of alternative investments,” the spokesperson said, signaling long-term ambitions even as short-term filings are off the table.

The SBI ETF denial sent ripples through Japan’s crypto community, where expectations for ETF approval have been running high following the U.S. greenlight of spot Bitcoin ETFs earlier this year.

Analysts say the setback highlights the stark difference in regulatory speed between Japan and other major economies.

Crypto market analyst Yoshitaka Kanda told Nikkei Asia:

“This pause is not necessarily bad news. It shows SBI is aligning with regulators, which could ultimately lead to smoother approvals once the rules are in place.”

With Japanese retail traders showing increasing interest in crypto investment vehicles, the delay may test investor patience — but it also positions SBI to be a first mover when regulations solidify.

What’s next after the SBI ETF denial?

SBI’s move follows a broader pattern in Asia, where financial institutions are cautiously awaiting legal clarity before rolling out innovative crypto products.

Industry observers note that this approach may protect investors while ensuring compliance.

For now, the SBI ETF denial means Japanese investors looking for regulated Bitcoin or XRP exposure will have to wait.

But the groundwork being laid now — including aligning ETF frameworks with the FIEA — could pave the way for a more robust and secure market in the future.

As SBI’s own statements make clear, it’s not a question of if, but when.