Major Japanese securities firms SBI Securities and Rakuten Securities are preparing to launch investment trust products tied to Bitcoin (BTC) and Ethereum (ETH), according to a report from Nikkei. The move signals a significant step toward mainstream cryptocurrency adoption in one of Asia’s most regulated financial markets.
Bridging Traditional Finance and Crypto
The planned products are designed to allow users to invest in cryptocurrency through their existing securities accounts, eliminating the need for separate crypto exchange accounts or personal wallets. This structure aims to lower the barrier for retail investors who may be hesitant to navigate the technical complexities of direct crypto ownership.
SBI Securities, through its group company SBI Global Asset Management, has set an ambitious target of securing approximately 5 trillion yen (roughly $33 billion) in assets under management within three years from these products. Rakuten Securities, a major online brokerage in Japan, is also moving forward with similar plans, though specific asset targets have not yet been disclosed.
Industry-Wide Interest Gaining Momentum
A Nikkei survey revealed that other prominent Japanese financial institutions, including Nomura Securities, Daiwa Securities, and Mizuho Securities, are also exploring entry into the crypto investment product market. These firms are reportedly waiting for clearer regulatory guidelines before formally launching their offerings.
The interest from traditional brokerages reflects a broader shift in Japan’s financial landscape, where crypto assets are increasingly viewed as a legitimate asset class rather than a speculative fringe. Japan has historically maintained a cautious but structured approach to cryptocurrency regulation, having been one of the first countries to establish a licensing framework for exchanges after the Mt. Gox incident.
Regulatory Path and Timeline
Japan’s Financial Services Agency (FSA) is currently reviewing whether to permit the inclusion of cryptocurrencies in investment trusts and exchange-traded funds (ETFs). According to the Nikkei report, discussions around approving a spot crypto ETF in Japan are targeting a timeline around 2028. This deliberate pace reflects the FSA’s priority on investor protection and market stability.
The FSA’s review is particularly significant because Japan has not yet approved a spot crypto ETF, unlike markets such as the United States, Canada, and Brazil. A potential approval would open the door for a new wave of institutional and retail capital into digital assets through regulated channels.
What This Means for Investors
For Japanese retail investors, the introduction of crypto investment trusts through established securities firms offers a regulated, familiar, and tax-efficient way to gain exposure to digital assets. Investment trusts in Japan are typically structured as collective investment schemes, providing diversification and professional management — a stark contrast to direct crypto purchases on exchanges.
Additionally, holding crypto through a securities account may simplify tax reporting, as capital gains from investment trusts are often handled differently than direct crypto trading profits under Japanese tax law. This could address one of the major pain points for individual crypto investors in Japan.
Conclusion
The plans by SBI Securities and Rakuten Securities to launch Bitcoin and Ethereum investment trusts mark a pivotal moment for cryptocurrency adoption in Japan’s mainstream financial system. With the FSA reviewing regulatory frameworks and other major brokerages waiting in the wings, the groundwork is being laid for a more integrated crypto investment ecosystem. While full approval for spot ETFs may still be a few years away, the direction is clear: Japan’s traditional financial institutions are preparing for a future where digital assets are part of the standard investment menu.
FAQs
Q1: What is a crypto investment trust?
A crypto investment trust is a pooled investment vehicle that holds cryptocurrencies like Bitcoin or Ethereum. Investors buy shares in the trust, which tracks the price of the underlying crypto asset, without needing to directly buy, store, or secure the digital coins themselves.
Q2: How is this different from buying crypto on an exchange?
Buying shares in an investment trust through a securities account is generally simpler and more familiar for traditional investors. It avoids the need for a crypto wallet, private key management, and separate exchange accounts. It may also offer more favorable tax treatment depending on the investor’s jurisdiction.
Q3: When will these products be available?
No specific launch dates have been announced yet. The products are in the planning stage, and their availability depends on regulatory approval from Japan’s Financial Services Agency. The FSA is currently reviewing the rules, with potential approval for a spot crypto ETF discussed for around 2028.
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