Bank of Japan to increase annual ETF sales to 860 billion yen

The Bank of Japan (BOJ) has announced plans to accelerate the sale of its Japanese equity exchange-traded funds (ETFs). Starting in January 2027, the annual sale amount on a book value basis will increase from approximately 330 billion yen to approximately 860 billion yen.

Based on market price conversions, this increase represents an annual value of roughly 2.46 trillion yen. This new pace is intended to represent about 0.1% of the Tokyo Stock Exchange Prime Market trading volume, up from the previous benchmark of approximately 0.05%.

The BOJ stated that the sales will be distributed throughout the year to minimize market impact. The central bank also maintained the authority to adjust or suspend sales volumes depending on prevailing financial market conditions.

While the decision focuses on equity supply, analysts note potential indirect links to other asset classes. The Bank for International Settlements (BIS) previously observed that shifts in yen-denominated carry trades and stock market volatility can lead to simultaneous position reductions across various assets, including cryptocurrencies.