SBI’s Bitcoin–XRP ETF Shocks Japan, But Markets Stay Quiet

SBI Holdings, a leading Japanese financial giant, has dropped a bombshell with its plan to launch Japan’s first Bitcoin-XRP ETF. 

Revealed in the Q2 2025 earnings report, this dual-asset fund aims to give investors a simple, regulated way to tap into Bitcoin and XRP, marking a historic moment for Japan’s tightly regulated crypto market. This bold move could redefine how crypto is viewed in one of Asia’s biggest economies.

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Understanding the Bitcoin-XRP ETF

The “Crypto-Assets ETF” is built to track the performance of Bitcoin and XRP simultaneously, offering a single investment vehicle for two top cryptocurrencies. 

This is a rare pairing, as XRP, despite its top-three market cap, hasn’t been bundled with Bitcoin in institutional products before, especially in Japan’s conservative financial landscape.

Why This ETF Stands Out

Unlike markets like the U.S., where XRP faces regulatory roadblocks, SBI’s ETF could make it a mainstream investment choice in Japan. 

Set to list on the Tokyo Stock Exchange, the fund promises credibility and accessibility, appealing to both retail and institutional investors eager for regulated crypto exposure.

Read Also: How Trump’s Japan Tariff Threats Over Rice Could Impact Crypto Markets

The Digital Gold Crypto ETF

SBI’s second offering, the “Digital Gold Crypto ETF,” allocates over 51% to gold-backed assets and 49% to cryptocurrencies, including Bitcoin and XRP. 

This hybrid fund targets risk-averse investors who want crypto’s high-growth potential balanced with gold’s time-tested stability.

Benefits for Cautious Investors

• Lower Risk Exposure: Combining volatile crypto with stable gold reduces overall investment risk.

• Broader Appeal: Attracts traditional investors hesitant about crypto’s price swings, making it a safer entry point.

Japan’s Shifting Crypto Landscape

On June 24, 2025, Japan’s Financial Services Agency (FSA) proposed reclassifying certain crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA). This could streamline ETF approvals and lower crypto taxes, paving the way for SBI’s innovative funds.

Regulatory Hurdles Ahead

SBI’s ETFs are still awaiting FSA approval, with uncertainty about whether formal filings have been made or if they’re in the planning stage. The company is optimistic, citing ongoing talks with regulators and Japan’s growing openness to crypto-friendly policies.

SBI’s Deep Ties with Ripple

SBI’s long-standing relationship with Ripple, XRP’s creator, gives this ETF extra credibility. As a major Ripple shareholder and user of XRP for cross-border payments via SBI Ripple Asia, SBI is well-positioned to push XRP into regulated markets, enhancing its global legitimacy.

Ripple’s Expanding Reach

SBI’s move aligns with Ripple’s growing institutional adoption, such as XRP custody services in South Korea through BDACS. If regulatory challenges, like the Ripple-SEC lawsuit, resolve favorably, this ETF could further boost XRP’s role in global finance.

Read Also: How Japan’s Rate Hike Could Affect Crypto Markets

Why Markets Aren’t Buzzing

Despite the ETF announcement, XRP’s price fell to $2.93, down 5% from $3.10, as of August 7, 2025. Analysts attribute this to technical market factors and lingering uncertainties from the Ripple-SEC case, which dampens investor enthusiasm.

Investor Caution in Japan

• Regulatory Uncertainty: Japan’s conservative financial market is wary of unapproved products.

• Market Dynamics: Investors await clearer signals from the FSA and global crypto trends before reacting strongly.

Potential Impact of SBI’s ETFs

If approved, these ETFs could attract significant institutional capital to Bitcoin and XRP, boosting liquidity and price stability. Japan’s regulated market could set a global precedent, inspiring similar crypto ETFs in other countries.

Challenges to Overcome

Success depends on navigating Japan’s strict regulatory framework, market sentiment, and the broader crypto ecosystem’s growth. While SBI’s track record and Ripple partnership inspire confidence, delays in approval or market volatility could pose risks.

What’s Next for Japan’s Crypto Market

SBI’s ETFs could spark broader crypto adoption in Japan, encouraging other firms to launch similar products. As the FSA reclassifies crypto assets, Japan could become a hub for regulated crypto investments, drawing global attention.

Long-Term Implications

The success of these ETFs could influence global markets, especially if XRP gains regulatory clarity. Investors worldwide will watch closely as Japan balances innovation with its cautious financial ethos.

Read Also: XRP Overtakes Ethereum in Popularity Among Japanese Investors

Conclusion

SBI’s Bitcoin-XRP ETF proposal is a game-changer, blending crypto with Japan’s traditional finance system. Despite a quiet market response due to XRP’s price dip and regulatory uncertainty, approval could unlock massive investment opportunities and position Japan as a crypto leader. Watch the FSA’s next steps, this could reshape the crypto landscape.

FAQ

What makes SBI’s Bitcoin–XRP ETF different from others?

It's Japan’s first dual-asset crypto ETF, bundling Bitcoin with XRP, something rarely seen in regulated markets, especially under Japan’s tight financial rules.

How does the Digital Gold Crypto ETF manage risk?

It blends 51% gold-backed assets with 49% crypto like BTC and XRP, offering price growth potential while lowering volatility, ideal for cautious investors.

Why hasn’t XRP’s price surged despite the ETF news?

XRP dropped 5% post-announcement due to technical resistance and uncertainty from the ongoing Ripple–SEC case, dampening short-term sentiment.

Is the ETF approved by Japan’s regulators yet?

Not yet. SBI is in talks with the FSA, but there’s no confirmation of formal filings. Regulatory approval is still pending.

Could these ETFs influence global crypto investment trends?

Absolutely. If approved, Japan’s move could set a global benchmark for regulated XRP and Bitcoin ETFs, potentially unlocking institutional capital worldwide.

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