SBI Applies for Japan’s First XRP ETF, Signaling Shift in Crypto Regulation

SBI Holdings, one of Japan’s leading financial institutions, has filed applications with the country’s Financial Services Agency (FSA) for two groundbreaking cryptocurrency ETFs. Disclosed in its Q2 2025 earnings report, the proposals include a “Crypto-Assets ETF” offering exposure to Bitcoin and XRP, and a “Digital Gold Crypto ETF” blending gold-backed securities with digital assets.

Source: SBI Holdings's Q2 2025 earnings report

If approved, these would be Japan’s first ETFs featuring XRP, positioning the country at the forefront of institutional crypto adoption.

The “Crypto-Assets ETF” aims to provide simultaneous exposure to Bitcoin and XRP, offering investors a simplified and diversified entry into the digital asset market. This is particularly notable for XRP, a top-three cryptocurrency by market capitalization.

In contrast, XRP enjoys widespread institutional support in Japan, bolstered by SBI’s longstanding partnership with Ripple, the firm behind the token. SBI has actively leveraged RippleNet for cross-border payments and even enabled customers to convert credit card points into XRP.

The second fund, the “Digital Gold Crypto ETF,” allocates over 50% of its portfolio to gold-backed securities. This hybrid structure targets risk-averse investors by balancing crypto volatility with the traditional stability of gold—an approach increasingly popular among asset managers integrating digital and traditional finance.

SBI’s ETF filings come at a pivotal moment in Japan’s crypto regulatory evolution. In June 2025, the FSA proposed amending the Financial Instruments and Exchange Act (FIEA) to officially classify cryptocurrencies as financial products.

The proposal also includes reducing the tax rate on crypto capital gains from a maximum of 55% to a flat 20%. These changes align with Japan’s “New Capitalism” initiative.

The XRP community—often referred to as the “XRP Army”—has closely followed the evolving relationship between SBI and Ripple for years. Following the ETF announcement, community sentiment on X surged with excitement. Many believe that the proposed funds could unlock a wave of institutional liquidity and mark a turning point for XRP’s integration into mainstream finance.

Despite the excitement, SBI has clarified that approval has not yet been granted, and cautioned investors not to rely on speculative claims circulating online. Industry watchers suggest that regulatory approval could come as early as September or October 2025.