Key Takeaways
- • SBI Securities and Rakuten Securities are launching in-house Bitcoin and Ethereum investment trusts, allowing Japanese retail investors to gain crypto exposure through existing brokerage accounts without opening separate exchange accounts or wallets.
- • SBI Global Asset Management is targeting ¥5 trillion ($32 billion) in assets under management within three years of launch, with SBI managing the full product chain internally from design through distribution.
- • Regulatory momentum is accelerating: A Nikkei survey of 18 Japanese financial firms found 11 others—including Nomura, Daiwa, and Mizuho Securities—prepared to enter the crypto trust market once the regulatory framework is finalized, signaling broad traditional finance adoption.
- • The product structure removes friction by allowing crypto investment through familiar brokerage interfaces, particularly through smartphone apps at Rakuten, matching existing retail crypto trading patterns while maintaining regulated fund architecture.
- • Both firms leverage existing licensed exchange infrastructure and regulatory relationships, positioning them to move quickly once final rules take effect, expected around 2028 for institutional crypto fund holdings in Japan.
Summary
Japan's two largest online brokerages are making a significant institutional pivot into digital assets. SBI Securities and Rakuten Securities are independently developing in-house Bitcoin and Ethereum investment trusts designed to give millions of Japanese retail investors regulated exposure to cryptocurrencies. The move represents a fundamental shift in how traditional finance is packaging and distributing crypto in Japan.
The mechanism is straightforward: instead of holding digital assets directly, investors will purchase units in regulated crypto investment trusts—functionally similar to mutual funds—through their existing brokerage accounts. According to Nikkei, this eliminates friction that currently requires Japanese users to maintain separate exchange accounts or digital wallets. Investors will gain Bitcoin and Ethereum exposure through the same platforms they use for stocks, bonds, and traditional funds, substantially lowering the barrier to institutional-grade crypto investment for retail customers.
SBI's approach is particularly aggressive. SBI Global Asset Management, the group's subsidiary, will develop the products and is targeting approximately ¥5 trillion (nearly $32 billion) in assets under management within three years of launch. Critically, SBI intends to manage the entire product chain internally—from product design through distribution—ensuring control over user experience and product strategy. Rakuten is following a parallel strategy through Rakuten Investment Management, with a focus on embedding crypto trust trading directly into its smartphone apps, where retail crypto activity already concentrates.
The competitive landscape extends well beyond these two players. A Nikkei survey of 18 Japanese financial firms found 11 others—including blue-chip institutions Nomura, Daiwa Securities, and Mizuho Securities—expressing willingness to develop similar products once the regulatory framework is complete. This response indicates broad traditional finance interest in crypto products before formal rules are finalized, suggesting substantial institutional demand once compliance pathways are clarified. Both SBI and Rakuten benefit from pre-existing licensed cryptocurrency exchange operations and established regulatory relationships, positioning them to accelerate launches compared to competitors still building compliance infrastructure. The timing aligns with expected regulatory clarity in Japan around 2028 for institutional crypto fund holdings.
The mechanism is straightforward: instead of holding digital assets directly, investors will purchase units in regulated crypto investment trusts—functionally similar to mutual funds—through their existing brokerage accounts. According to Nikkei, this eliminates friction that currently requires Japanese users to maintain separate exchange accounts or digital wallets. Investors will gain Bitcoin and Ethereum exposure through the same platforms they use for stocks, bonds, and traditional funds, substantially lowering the barrier to institutional-grade crypto investment for retail customers.
SBI's approach is particularly aggressive. SBI Global Asset Management, the group's subsidiary, will develop the products and is targeting approximately ¥5 trillion (nearly $32 billion) in assets under management within three years of launch. Critically, SBI intends to manage the entire product chain internally—from product design through distribution—ensuring control over user experience and product strategy. Rakuten is following a parallel strategy through Rakuten Investment Management, with a focus on embedding crypto trust trading directly into its smartphone apps, where retail crypto activity already concentrates.
The competitive landscape extends well beyond these two players. A Nikkei survey of 18 Japanese financial firms found 11 others—including blue-chip institutions Nomura, Daiwa Securities, and Mizuho Securities—expressing willingness to develop similar products once the regulatory framework is complete. This response indicates broad traditional finance interest in crypto products before formal rules are finalized, suggesting substantial institutional demand once compliance pathways are clarified. Both SBI and Rakuten benefit from pre-existing licensed cryptocurrency exchange operations and established regulatory relationships, positioning them to accelerate launches compared to competitors still building compliance infrastructure. The timing aligns with expected regulatory clarity in Japan around 2028 for institutional crypto fund holdings.
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