Globalization of Crypto ETFs: Asia Ignites the Trend of 'Crypto ETFization'

The cryptocurrency ETF market, once dominated by Europe and America, is now witnessing the rise of Asian powers - Japan has taken the lead with regulatory easing and tax reform, followed closely by Hong Kong, South Korea, Singapore, and others in China. The call for "crypto ETFization" is on the rise, gradually reshaping the global market landscape.

Cryptocurrency ETFs, with their advantages of standardization and compliance, lower the operational and security barriers for investors to participate in cryptocurrency assets, and enhance their mainstream recognition. As of early 2026, 13 countries and regions around the world have entered the cryptocurrency ETF market, with 8 officially listed and 5 in progress. The collective efforts of the Asian market have become a key turning point.

1、 Japan leads the way: Tax reform+regulatory easing, fully opening up the channel for the landing of cryptocurrency ETFs

Japan is a leader in the "crypto ETFization" of Asia. In order to reshape the competitiveness of Tokyo International Financial Center, it has cleared the obstacles to the landing of crypto ETFs through "tax reform+regulatory revision" and promoted the transformation of crypto assets into legal financial products. The core measures include significantly reducing the cryptocurrency income tax rate from 55% to 20%, which is on par with the financial investment income tax rate, and bringing it under the supervision of securities.

Regulatory and tax dividends have laid a solid foundation. The research group of the Japanese Ministry of Finance has proposed a roadmap for Bitcoin/Ethereum ETFs in October 2025, and the proposal will be submitted to the Financial Services Agency in March 2026. If approved, the ban on Bitcoin spot ETFs will be lifted. SoftBank and other giants have accelerated their deployment of cryptocurrency infrastructure. Analysts predict that Japanese institutional cryptocurrency holdings are expected to exceed $20 billion by 2026, and Nomura, SBI, and others have also completed preparations for ETF products.

2、 Asian resonance: multiple countries follow suit, 'crypto ETFization' becomes industry consensus

Japan's efforts have driven multiple Asian markets to follow suit, forming a coordinated development trend. Hong Kong, China is the first to test the waters of cryptocurrency spot ETFs. In April 2024, six Bitcoin and Ethereum ETFs will be launched, showing a differentiated performance of "Bitcoin ETF soaring, Ethereum ETF under pressure" after one year of operation. Currently, product innovation is accelerating and enriching the ETF matrix.

South Korea and Singapore form a differentiated layout: South Korea lifts its ban on cryptocurrency ETFs by the end of 2025, and local giants have completed product preparations for millions of retail investors; Singapore currently does not approve pure spot ETFs, but allows the issuance of encrypted ETNs and structured products, focusing on high net worth clients. In addition, countries such as Thailand and India are also building regulatory frameworks and are expected to join the "crypto ETFization" camp.

3、 Reshaping the Global Landscape: Opportunities and Challenges Coexist

The Asian market is breaking the dominant pattern of Europe and America, promoting the globalization of cryptocurrency ETFs into a new stage of "Europe and America leading, Asia making efforts". By the end of 2025, the net inflow of global encrypted ETFs will exceed 70 billion US dollars, with an increased contribution from Asia. However, it also faces challenges such as insufficient regulatory coordination, volatility in encrypted asset prices, and lack of investor education.