Woofun AI reports that Japan is accelerating the legalization of cryptocurrency ETFs, with the Finance Minister confirming a target launch window of 2026. This regulatory milestone positions SBI Holdings at the forefront, preparing to introduce a hybrid trust combining Bitcoin and XRP.

The structural framework for these products involves transferring oversight of spot cryptocurrencies to a regime that treats them as fully regulated financial products. Consequently, these assets will receive the same legal treatment as stocks, with initial exchange debuts potentially occurring as early as next year. The proposed SBI vehicle features a specific asset allocation, weighting 51% toward Bitcoin and 49% toward XRP.

Per Woofun AI, the financial scale of this initiative is substantial, with SBI aiming to manage approximately ¥5 trillion—around $32 billion—in assets within three years. Competitive dynamics are intensifying as Nomura and Rakuten Securities prepare their own market entries.

Additionally, Ripple remains a key entity in the broader ecosystem surrounding these emerging products.

This shift signifies a definitive move toward stricter oversight and standardized legal treatment for digital assets. By aligning crypto regulations with traditional finance, Japan is establishing a precedent for institutional adoption.