Advertise
- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 15, 2025 12:00 UTC
-
BOJ to Start Selling $534B in ETFs as Rate Hike Looms; Bitcoin Under Pressure?
BOJ to gradually sell ¥83T in ETFs starting January, aiming for minimal market impact amid rising rates and global liquidity tightening.
Japan’s rate hike and ETF exit strain yen-funded leverage, affecting risk assets like Bitcoin, now trading near $89,700.
As early as January, the Bank of Japan (BOJ) is expected to begin selling its massive ETF holdings, a portfolio valued at ¥83 trillion ($534 billion). The plan is to move slowly and avoid market shock. But even a gradual exit from ETFs by one of the world’s biggest central banks carries weight, especially at a time when global liquidity is tightening.
See how this could affect the markets.
Bank of Japan Prepares to Start Selling ETFs
According to Bloomberg, BOJ officials plan to offload ETFs gradually following a decision made at the September policy board meeting. The central bank has set a pace of ¥330 billion per year based on book value, a timeline that could stretch for decades.
The goal is to keep the impact minimal. Officials want the market response to be barely noticeable, similar to how Japan sold bank stocks in the 2000s without disrupting markets.
Still, the scale is hard to ignore. The ETF holdings have grown sharply in value as Japan’s stock market rallied over the past two years, leaving the BOJ with massive unrealized gains.
Rate Hike Expectations Add More Pressure
The ETF exit comes as markets expect a 25 basis point rate hike at the BOJ’s December 18-19 meeting. Polymarket currently shows a 98% probability of a hike, which would take Japan’s policy rate to 75 basis points, the highest level in nearly 20 years.
That shift matters because Japan has long been the world’s cheapest source of leverage.
“For decades, the Yen has been the #1 currency people would borrow & convert into other currencies & assets… That carry trade is diminishing now, as Japanese bond yields are rising rapidly,” wrote analyst Mister Crypto.
Why Bitcoin Is Feeling the Impact
As yen-funded leverage comes under strain, risk assets are vulnerable. Bitcoin is already trading below the $90,000 level, sitting at $89,701 currently.
That said, the market response has been relatively controlled. Many analysts note that expectations around a Bank of Japan rate hike have been circulating for weeks, giving traders time to adjust positioning. In that sense, part of the impact may already be reflected in current prices.
While markets are clearly paying attention, there is no sign of disorderly selling so far, suggesting investors are treating this as a macro adjustment rather than a sudden risk event.’
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The BOJ is selling its ETFs to normalize monetary policy after years of stimulus, but it plans to sell so gradually that the market impact is designed to be “almost unnoticeable”.
A BOJ interest rate hike and ETF sales could pressure Bitcoin by reducing global market liquidity. This could weaken the popular “yen carry trade,” where investors borrow cheap yen to buy riskier assets like crypto.
BOJ is expected to begin its ETF sales in January, moving slowly over the years to avoid sudden market reactions.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
