Key Takeaways
- • Three major Japanese brokerages—SBI Securities, Rakuten Securities, and Nomura Securities—are preparing to launch cryptocurrency investment trusts and ETFs following Japan's regulatory shift to reclassify digital assets under securities law, with implementation expected by 2028.
- • The regulatory framework will formally list cryptocurrencies as a specific asset class eligible for inclusion in investment trust portfolios, creating a standardized pathway for retail investor access to Bitcoin and Ethereum through existing brokerage accounts.
- • Institutional appetite is broad: a Nikkei survey of 18 major Japanese securities firms found 11 additional companies—including Daiwa Securities and Mizuho Securities—ready to enter the crypto funds market once regulatory clarity is finalized.
- • Products will be structured as both traditional investment trusts and exchange-traded funds (ETFs), mirroring the U.S. spot crypto ETF model that has accumulated over $100 billion in net assets since January 2024 approval.
- • SBI Holdings is simultaneously pursuing a stake acquisition in Bitbank, signaling vertical integration across Japan's institutional crypto ecosystem as major financial groups position for market expansion.
Summary
Japan's largest securities firms are positioning for significant market entry into cryptocurrency investment products as the Financial Services Agency finalizes the regulatory framework governing crypto assets. SBI Securities and Rakuten Securities have announced concrete plans to offer cryptocurrency investment trusts to retail customers through their existing brokerage platforms, with Nomura Securities also moving to develop comparable products. These institutional players are moving ahead of formal regulatory approval, reflecting confidence in the pending rule changes.
The regulatory shift represents a fundamental reclassification: Japan's Investment Trust Law implementation order will be revised by 2028 to formally designate cryptocurrencies—specifically Bitcoin and Ethereum—as eligible asset classes for inclusion in regulated investment vehicles. This structured timeline provides product developers with 18-24 months to prepare infrastructure, compliance systems, and fund mechanics before launch. The regulatory approach mirrors international precedent, particularly the U.S. approval of spot Bitcoin and Ethereum ETFs in January 2024, which generated rapid institutional adoption and now hold over $100 billion in combined net assets.
Industry interest extends well beyond the three named firms. A Nikkei Asia survey of 18 major Japanese securities companies revealed that 11 additional firms—including Daiwa Securities, Mizuho Securities, and SMBC Nikko—indicated they would consider launching crypto investment trusts once regulatory clarity is confirmed. This broad-based institutional positioning suggests the Japanese market views crypto asset classes as strategically important for retail client portfolios and competitive positioning.
The product offerings will include both traditional investment trusts and exchange-traded funds (ETFs), allowing customers to gain cryptocurrency exposure through their standard brokerage accounts without requiring separate crypto exchange accounts or wallet management. This distribution model materially lowers barriers to entry for retail investors and institutional asset managers. Concurrently, SBI Holdings is advancing discussions to acquire a stake in Bitbank, Japan's established cryptocurrency exchange, which would consolidate market infrastructure and create vertically integrated crypto offerings across SBI's financial services ecosystem.
The regulatory shift represents a fundamental reclassification: Japan's Investment Trust Law implementation order will be revised by 2028 to formally designate cryptocurrencies—specifically Bitcoin and Ethereum—as eligible asset classes for inclusion in regulated investment vehicles. This structured timeline provides product developers with 18-24 months to prepare infrastructure, compliance systems, and fund mechanics before launch. The regulatory approach mirrors international precedent, particularly the U.S. approval of spot Bitcoin and Ethereum ETFs in January 2024, which generated rapid institutional adoption and now hold over $100 billion in combined net assets.
Industry interest extends well beyond the three named firms. A Nikkei Asia survey of 18 major Japanese securities companies revealed that 11 additional firms—including Daiwa Securities, Mizuho Securities, and SMBC Nikko—indicated they would consider launching crypto investment trusts once regulatory clarity is confirmed. This broad-based institutional positioning suggests the Japanese market views crypto asset classes as strategically important for retail client portfolios and competitive positioning.
The product offerings will include both traditional investment trusts and exchange-traded funds (ETFs), allowing customers to gain cryptocurrency exposure through their standard brokerage accounts without requiring separate crypto exchange accounts or wallet management. This distribution model materially lowers barriers to entry for retail investors and institutional asset managers. Concurrently, SBI Holdings is advancing discussions to acquire a stake in Bitbank, Japan's established cryptocurrency exchange, which would consolidate market infrastructure and create vertically integrated crypto offerings across SBI's financial services ecosystem.
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