**Japan Hesitates on Crypto ETFs Amid Global Adoption**

Japan's regulators are cautious about approving cryptocurrency-based exchange-traded funds (ETFs), even as global markets, including the US and Hong Kong, embrace them. Despite domestic advocacy and partnerships pushing for digital asset products, Japan's tax and regulatory policies pose significant hurdles.

**Global Trends:**

- The US and Hong Kong have approved spot Bitcoin (BTC) and Ether (ETH) ETFs.

- Investors recently poured $329 million into BlackRock’s iShares Bitcoin Trust.

**Japan's Stance:**

- The Ministry of Finance and Financial Services Agency (FSA) remain wary of crypto ETF volatility.

- Profits from crypto investments are taxed as miscellaneous income at rates up to 55%, compared to traditional ETFs' 20% capital gains tax.

**Political Moves:**

- Yuichiro Tamaki, leader of Japan’s Democratic Party for the People, advocates for a 20% tax on crypto assets, aiming to strengthen Japan's position in Web3.

**Market Activity:**

- Despite regulatory concerns, Japanese firms like Metaplanet continue to accumulate Bitcoin, with recent purchases bringing their holdings to nearly 640 BTC.