Key Insights:
- Crypto-investment trusts, based on Bitcoin and Ethereum assets, are being developed by SBI and Rakuten.
- New regulations from Japan are expected to enable the launch of crypto ETFs in 2028.
- Retailers can soon invest in cryptocurrencies from their brokerage accounts.
Japan’s crypto investment trusts are moving closer to the retail market as some of the country’s largest brokerage groups prepare new digital asset investment products tied to Bitcoin and Ethereum. Major firms, including SBI Securities and Rakuten Securities, are already developing investment trust products internally, while other financial groups are waiting for regulatory revisions before entering the sector. The planned products would allow retail investors to gain exposure to cryptocurrencies through traditional securities accounts rather than through dedicated crypto exchanges or private wallets.
Japan Crypto Investment Trusts Gain Momentum Among Brokerages
According to a report published Sunday by Nikkei, SBI Securities plans to distribute crypto-related funds issued by its group affiliate, SBI Global Asset Management. The planned offerings are expected to include both exchange-traded funds and investment trusts linked to liquid crypto assets such as Bitcoin and Ethereum.
Source: Zubiqo
The report stated that the SBI group intends to manage the entire process internally, including product development, administration, and retail distribution.
The system would enable the corporation to manage areas such as compliance systems, customer access, fee administration, and asset selection using its own financial network. The project also aligns with the organization’s current digital asset activities, including custody, exchange, and token-related financial services.
In addition, Rakuten Securities is developing cryptocurrency investment products within its corporate group. The firm is said to be partnering with Rakuten Investment Management to launch products that traders will buy via smartphone apps.
The mobile-first approach reflects the growing role of retail in digital assets, primarily through mobile applications. By incorporating exposure to crypto assets into their brokerage applications, the companies will ensure their clients can access digital assets within the same ecosystem as traditional investments.
Retail Involvement Could Change via Traditional Securities Accounts
The impending launch of Japanese crypto investment trusts may completely change the dynamics of retail participation in digital assets in the country. Currently, investors must set up individual cryptocurrency trading accounts or wallets to purchase digital assets.
Under the new scheme of investment trusts, investors will invest in cryptocurrency assets by utilizing their securities accounts, which are traditionally used in investing in other types of financial instruments such as stocks, bonds, and mutual funds.
According to the report, brokers view the structure as a response to investors’ current needs to invest in cryptocurrency assets via financial tools offered by regulated firms. Utilizing their brokerage services, the companies can offer access to digital currencies through a platform known to retail investors.
Products under development are expected to focus on very liquid cryptocurrencies such as Bitcoin and Ethereum rather than less liquid ones.
Preparation of Financial Groups for Regulatory Change
Several more financial companies are preparing to launch new Japan crypto investment trust products. These include Nomura Holdings Inc. and Daiwa Securities Group Inc., both of which plan to develop their crypto investment trust products.
The role of these companies is important, as they operate on a very large scale in the Japanese market. SMBC Group, along with SMBC Nikko Securities, is also said to have formed an intergroup task force to evaluate possible options for cryptocurrency investment products.
Furthermore, Asset Management One, operating under the umbrella of Mizuho Financial Group, has initiated initial evaluations concerning the industry. This shows that financial institutions other than those currently operating in the field of cryptocurrencies are preparing.
Regulatory Changes Will Facilitate Future Growth of Crypto ETFs
The occurrence of such events has also come at a time when certain regulatory changes are in the works by the Japanese authorities. It is reported that the Japanese Financial Services Agency is considering amending the enforcement order under the Investment Trust Act before 2028.
Through these amendments, the status of cryptocurrencies will be recognized as a designated asset under the Investment Trust Act, allowing them to be held by investment trusts.
Separate reports have also indicated that Japan may permit crypto exchange-traded funds as early as 2028. Major financial groups, including Nomura Holdings and SBI Holdings, are expected to be among the first institutions preparing related products.
SBI Holdings has already outlined plans for a Bitcoin-XRP dual ETF and another product tied to both gold and crypto assets, subject to regulatory approval. If related legislation advances during the current parliamentary session, the measures are expected to take effect during fiscal 2027.
