26.01.202614:52 Forex Analysis & Reviews: Japan may launch cryptocurrency ETFs

While Bitcoin struggles with another round of outflows from spot ETFs and a sharp drop in the Fear & Greed Index, Nikkei reports that the first exchange?traded funds investing in cryptocurrencies in Japan could debut as early as 2028, simplifying retail investors' access to Bitcoin and other digital tokens.

Japan's Financial Services Agency plans to add cryptocurrencies to the list of assets permitted for inclusion in ETFs and to introduce stricter investor?protection measures. This potential step reflects a global trend toward legitimizing and integrating crypto into the traditional financial system. While some countries remain cautious or hostile, others see crypto as an opportunity for innovation and economic growth. If implemented, Japan's move could have a significant market impact by attracting new investors and boosting liquidity.

Nomura Holdings and SBI Holdings are among the financial groups preparing to launch the first Japanese crypto ETFs, which would require approval from the Tokyo Stock Exchange.

It is worth noting that this idea was implemented in the US several years ago. The total net assets of US?registered spot Bitcoin ETFs currently stand at roughly $120 billion. Some participants in Japan's asset?management industry estimate that Japanese crypto ETFs could eventually reach 1 trillion yen (about $6.4 billion).

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $88,500, which opens a direct path to $90,500 and then to $92,100. The farther target is around $94,000; breaking that would signal attempts to resume the bull market. In case of a decline, buyers are expected at $86,300. A move back below that area could quickly push BTC toward $83,200. The far downside target is $81,200.

Ethereum

A clear hold above $2,887 opens a direct path to $2,970. The farther target is around $3,050; surpassing that would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $2,789. A move back below that area could quickly push ETH toward $2,684. The far downside target is $2,585.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.