Japan Could Approve an XRP ETF Before the US, Thanks to Its Largest Bank: SBI Holdings

• SBI has applied to launch a BTC/XRP ETF on the Tokyo Stock Exchange.
• Several Japanese firms now rank in the top 100 Bitcoin Treasuries globally.
• Japanese regulators are currently mulling a proposal to categorize cryptocurrencies as financial products, not payment instruments.

Japan’s crypto scene is picking up speed, with financial giant SBI applying to launch a Ripple (XRP) and Bitcoin (BTC) ETF on the Tokyo Stock Exchange.

If approved, it could put Japan ahead of the U.S. in the race to list the first altcoin ETF.

Big in Japan

On July 31, SBI Japan revealed in its Q2 2025 report that it has filed to launch two new ETFs on the Tokyo Stock Exchange.

The first fund proposed is titled the Digital Gold Crypto ETF, which will allocate over half of its capital to gold ETFs, and the rest to the Franklin Templeton Bitcoin ETF (EZBC).

The second product is the “Crypto Assets ETF,” which is structured to track the performance of XRP and BTC and potentially has room for more assets.

The application comes shortly after Japan’s financial watchdog submitted a proposal to include crypto under its Financial Instruments and Exchange Act, which would categorize digital assets as financial products instead of payment methods.

If given the go-ahead, Japan would have outpaced U.S. regulators, who are still in the process of reviewing a slew of altcoin ETF applications.

Interestingly, SBI is a long-time Ripple backer, having invested in the firm back in 2016. In 2025, it’s XRP’s largest external shareholder with a 9% equity stake in the firm.

Ripple Effects

The success of U.S. spot Bitcoin and Ethereum ETFs can’t be overstated. Combined, they hold just over $166 billion in net assets, with BTC funds representing $146.18 billion of this figure.

This level of institutional adoption has spurred massive price gains for the respective cryptos, ultimately affirming that adopting Bitcoin as a treasury asset, like Michael Saylor did back in August 2020, no longer bears the same levels of risk that it once did.

Now, many firms around the world are clamouring for Bitcoin. Metaplanet, a hotelier-turned BTC Treasury firm, has experienced incredible success in stock price appreciation after pivoting to BTC in April 2024.

It’s had a ripple effect, as now several other major Japanese firms have begun pursuing BTC as a treasury asset. And with institutional demand growing at a feverish rate, the nation may look to more favorable crypto regulations, which could indeed see XRP ETFs launch in Japan.