Osaka Exchange plans Bitcoin futures by 2028 as Japan joins global crypto derivatives market

Osaka Exchange (OSE) has announced the launch of Bitcoin futures by 2028, as reported by Nikkei Financial. This development will enable institutional investors in Japan to have access to a legitimate hedging platform, and also position its third-largest stock market globally for participation in the crypto derivatives race.

Akira Tagaya, OSE President, said that the derivative instrument is intended is for institutional players who are already trading in Bitcoin through the exchange-traded fund process, per a June 11 report.

This development comes as Japan’s Financial Services Agency (FSA) works on amendments which will change the classification of cryptocurrency and open the door to a broader suite of investment products.

FSA plans to establish a new regulatory framework

The FSA is planning to amend the enforcement ordinance of the Investment Trust Law of Japan by the year 2028, making the inclusion of cryptocurrencies under the “specified assets” for investment trusts.

This will enable the formation of cryptocurrency-based investment trusts by asset management firms for retail and institutional clients in Japan.

This policy direction aligns with the FSA’s overall review of digital asset regulations in Japan. According to documents released by the regulator and its Financial System Council, there were discussions about integrating crypto assets into the country’s framework for investment products while strengthening disclosure and investor-protection requirements.

The move was previously announced by JPX several months ago. In particular, JPX CEO Hiromi Yamaji stated that asset management companies had expressed strong interest in introducing crypto ETF products, and the exchange would consider moving ahead after sorting out legislative and tax-related issues.

The idea also fits into JPX’s Medium-Term Management Plan, which mentions asset classes and new businesses as priorities for the exchange. The plan gives more context for why JPX will consider introducing cryptocurrency-related products along with its equity and derivatives trading products.

Nomura Holdings and SBI Holdings are likely among the first companies to introduce crypto ETF products Tokyo Stock Exchange after getting approval, as reported by Nikkei Asia back in January.

Analysts estimate the potential size of the crypto ETF market in Japan to be up to ¥1 trillion (around $6.4 billion).

Where Japan fits in the global derivatives picture

The CME introduced its Bitcoin futures in December 2017 during a period marked by a rally in Bitcoin prices caused by retail speculation that pushed the cryptocurrency’s value past $19,000, followed by an extended bear market.

Cryptopolitan has previously reported that CME Bitcoin futures open interest has grown substantially over subsequent years, becoming a primary venue for institutional hedging and basis trading, particularly after spot Bitcoin ETFs won approval in the United States in January 2024. 

According to CME Group, average daily volume across crypto derivatives reached 198,000 contracts in Q1 2025, representing approximately $11.3 billion in notional value per day, while average open interest rose to 251,000 contracts worth roughly $21.8 billion.

Hong Kong approved spot Bitcoin and Ether ETFs in April 2024, with products launched by China Asset Management (Hong Kong), Bosera HashKey, and Harvest Global Investments, making it the first jurisdiction in Asia to authorize spot crypto ETFs.

Meanwhile, Singapore Exchange (SGX) launched Bitcoin perpetual futures for institutional and professional investors in 2025, reflecting intensifying competition among Asian financial centers seeking to attract digital-asset trading, asset-management activity, and institutional capital flows.

Japan’s venture into the crypto derivatives market would add a major regulated venue in Asia’s largest time zone. The OSE currently functions as a derivatives specialist for JPX following a restructure back in 2013 which separated the listing of equities to the Tokyo Stock Exchange while keeping future and options trading centralized in Osaka, Bitget reports.

Having this kind of platform means that Japan’s crypto exchange would have a solid starting ground when entering the cryptocurrency derivatives business.

The proposed 2028 timeframe could play a key role in institutional-based trading. Should Japan permit ETFs as well as Bitcoin futures at the same time, it would give traders the ability to trade using cash and carry strategies in the same fashion they would with CME futures and spot Bitcoin ETFs.

This will allow them to arbitrage across spot positions, ETF shares, and futures contracts all within regulated markets. In terms of JPX, the opportunity here goes beyond just crypto trading – futures trading will bring them steady income from clearing and execution fees, among others, potentially creating a new growth segment as traditional derivatives volumes mature.

Important regulatory events and market developments to watch out for before 2028

Everything will entirely depend on when the FSA completes the implementation of the crypto regulations changes. If the modification of regulations turns out to be a lengthy procedure, then the introduction of the contracts and ETFs might take some time.

Market participants and competing crypto exchanges need to wait until the Investment Trust Law is revised, which would serve as the regulatory starting gun for Japan’s crypto fund industry.

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