The Osaka Stock Exchange (OSE) has announced the launch of Bitcoin futures by 2028, Nikkei Financial reported. This development will enable institutional investors in Japan to access a legitimate hedging platform, as well as position the world’s third-largest stock market to participate in the cryptocurrency derivatives race.
The derivative instrument is intended for institutional players who already trade Bitcoin through an exchange-traded fund process, said Akira Tagaya, president of OSE. According to the June 11 report.
This development comes at a time when the Japanese Financial Services Agency (FSA) is working on amendments that will change the classification of cryptocurrencies and open the door to a wider range of investment products.
The Financial Supervision Authority plans to create a new regulatory framework
The Free Syrian Army is planning To amend Japan’s Investment Fund Law Enforcement Law by 2028, making cryptocurrencies among the “specified assets” of investment funds.
This will enable the formation of cryptocurrency-based investment funds by asset management companies for retail and institutional clients in Japan.
This policy direction is consistent with FSA’s comprehensive review of digital asset regulations In Japan. According to documents released by the regulator and its Financial System Council, there have been discussions about integrating crypto assets into the country’s framework for investment products while strengthening disclosure requirements and investor protection.
The move was previously announced by JPX several months ago. particularly, JPX CEO Hiromi Yamaji said That asset management companies have expressed a strong interest in offering crypto ETF products, and that the exchange will consider moving forward after the legislative and tax-related issues are resolved.
The idea also fits into JPX’s medium-term management plan, which lists new asset classes and companies as priorities for the exchange. The plan provides more context on why JPX is considering offering cryptocurrency-related products alongside equity and derivatives trading products.
Nomura Holdings and SBI Holdings are likely to be among the first companies to introduce cryptocurrency ETF products on the Tokyo Stock Exchange after receiving approval, As reported by Nikkei Asia Back in January.
Analysts estimate the potential size of the cryptocurrency ETF market in Japan at up to 1 trillion yen (about $6.4 billion).
Where Japan fits into the global derivatives picture
The Chicago Mercantile Exchange introduced bitcoin futures in December 2017 during a period marked by rising bitcoin prices due to retail speculation that pushed the value of the cryptocurrency above $19,000, followed by an extended bear market.
I mentioned Cryptopolitan previously Open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange has grown significantly over the subsequent years, becoming a major venue for institutional hedging and fundamental trading, especially after spot Bitcoin ETFs gained approval in the US in January 2024.
According to CME GroupThe average daily volume of cryptocurrency 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 approximately $21.8 billion.
Hong Kong agreed 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 allow spot crypto ETFs.
Meanwhile, The Singapore Stock Exchange (SGX) is launched. Perpetual Bitcoin futures contracts 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 cryptocurrency derivatives market would add a major regulated venue in Asia’s largest time zone. OSE currently serves as a derivatives specialist for JPX following a restructuring in 2013 that separated the stock’s listing on the Tokyo Stock Exchange while keeping futures and options trading centrally in Osaka. Petgate reports.
The presence of this type of platform means that the Japanese cryptocurrency exchange will have a strong starting foundation when entering the field of cryptocurrency derivatives.
The proposed 2028 time frame could play a major role in institutional trading. If Japan allows ETFs as well as Bitcoin futures at the same time, it will give traders the ability to trade using cash and carry strategies in the same way they use with CME futures and spot Bitcoin ETFs.
This will allow them to arbitrage across spot positions, ETF shares and futures, all within regulated markets. As far as JPX is concerned, the opportunity here goes beyond just trading cryptocurrencies – futures trading will bring them fixed income from clearing and execution fees, among other things, potentially creating a new growth sector as traditional derivatives volumes mature.
Important regulatory events and market developments to watch out for before 2028
Everything will depend entirely on when the Financial Services Authority (FSA) finishes implementing the changes in crypto regulations. If amending the regulations turns out to be a lengthy procedure, introducing contracts and ETFs may take some time.
Market participants and competing cryptocurrency exchanges need to wait for the Investment Fund Law, which will serve as a regulatory launchpad for the cryptocurrency fund industry in Japan, to be reviewed.
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