Japan’s largest banking group, SBI Holdings, filed for a Bitcoin and XRP ETF

Japan’s banking group, SBI, applied for a Bitcoin and XRP ETF. The bank leverages the existing market structure and its partnership with Ripple. SBI also filed for a digital gold ETF to balance risk by having gold-backed securities. 

SBI said it was expanding access to crypto through regulated vehicles for investors. The first crypto-only fund will directly invest in Bitcoin and XRP. The second fund will allocate over half of its assets to securities backed by gold, while also including other digital assets. SBI claimed that this move was part of its mission to promote crypto adoption and access in Japan. 

SBI targets risk-sensitive crypto investors

SBI Holdings, valued at $214 billion, has submitted applications to launch ETFs for XRP ($XRP) and Bitcoin ($BTC) pic.twitter.com/YbkJCqVVjO

— 𝗕𝗮𝗻𝗸XRP (@BankXRP) August 6, 2025

The bank’s intentions were disclosed in its Q2 2025 report. SBI said the ETF applications were meant to provide retail and institutional investors with crypto exposure. One analyst claimed that the bank’s track record increased its chances of getting the ETF approvals. 

SBI plans to list the funds on the Tokyo Exchange. It also revealed that the dual-exposure strategy was expected to boost the ETFs’ appeal across different investor levels. 

The bank disclosed that its hybrid ETF strategy aimed to help risk-sensitive investors combine crypto with the stability of gold. It said the proposed ETFs aligned with its initiatives promoting XRP payments, while leveraging its market reach and strong infrastructure. If approved, the ETFs will drive increased XRP investments from institutions, potentially boosting the asset’s liquidity and price stability.

SBI explained that including a gold ETF was meant to balance the approach to risk management. It asserted that gold attracted investors who sought to hedge against market volatility. The tokenized gold also pushed for crypto participation and growth. 

SBI’s recent announcements have sparked interest among XRP holders. They view the bank’s initiative as a positive step towards promoting crypto’s mass adoption. However, the bank pointed out that the ETFs’ success depended on market sentiment, Japan’s regulatory outcomes, and the maturation of its crypto industry.

The bank claimed that the proposed ETFs represented growth in Japan’s financial systems. The initiative combined Japan’s crypto market and traditional financial systems to shape its future asset management. SBI aims to demonstrate its confidence in Japan’s investor interest in crypto-based products and the regulatory environment. 

Japan proposes new legal status for crypto assets

Japan’s central bank said it’s seeking to launch the funds once the country’s regulators give the green light, suggesting that discussions might be ongoing. The ETFs would be the first digital asset funds offered in the country once approved by the Financial Services Agency (FSA).

SBI acknowledged that the financial watchdog was trying to reclassify crypto assets in Japan. The firm suggested that ETFs may be under development and awaiting the FSA’s regulatory shift. It’s still unclear whether an XRP-Bitcoin ETF has been proposed to the regulator or whether they are in the pre-filing and planning stage.

Japan’s financial regulator also proposed in June that digital assets be reclassified as financial products under the Financial Instruments and Exchange Act (FIEA) scope. The proposal is meant to pave the way for the launch of crypto ETFs.

The proposal will also remove Japan’s current progressive tax system that taxes income from virtual currencies up to 55%, to a flat 20% tax. Japan acknowledged that the proposals are part of its broader New Capitalism strategy that aims to advance the country into an investment-led economy.

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