Lead

Japan’s leading online brokerages, SBI Securities and Rakuten Securities, are preparing to offer cryptocurrency investment trusts that will enable retail investors to gain exposure to bitcoin and ethereum through their existing brokerage accounts. The development follows recent regulatory guidance from the Financial Services Agency and mirrors the spread of crypto‑focused ETFs in the United States and Hong Kong.

Background

Japan has long been one of the world’s most active retail crypto markets, yet it has lacked the packaged investment products that have become popular in other major economies. The country’s Financial Services Agency (FSA) has been refining its regulatory framework for digital assets since 2019, creating a structured environment for crypto businesses. In January 2024, the United States approved spot Bitcoin ETFs, and Hong Kong followed with approvals for Bitcoin and Ethereum ETFs, signaling a shift in how traditional finance treats digital assets.

Both SBI Securities and Rakuten Securities already operate regulated cryptocurrency exchanges—SBI VC Trade and Rakuten Wallet, respectively—providing them with the infrastructure and regulatory relationships needed to launch investment trusts.

What Happened

According to Nikkei Asia, SBI Securities and Rakuten Securities are each developing in‑house cryptocurrency investment trusts that will track the prices of major digital assets, primarily Bitcoin and Ethereum. The trusts will be offered as exchange‑traded funds (ETFs) and will allow customers to purchase units through their existing brokerage accounts, eliminating the need to sign up for a separate crypto exchange or manage private keys.

A Nikkei survey of 18 companies revealed that another 11 firms, including Nomura Securities, Daiwa Securities and Mizuho Securities, plan to consider entering the market once the regulatory process is completed. The products will be developed by subsidiaries within the broader holding groups of SBI Group and Rakuten Group.

In early April, the Japanese government approved a draft amendment that would classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act, rather than as payment tools. If passed by parliament, the law could take effect in fiscal 2027, providing a clearer legal basis for crypto investment products.

Market & Industry Implications

The introduction of crypto trusts by SBI and Rakuten is expected to make crypto investing routine for Japanese retail investors, who already hold brokerage accounts with these firms. By offering exposure through familiar channels, the trusts could broaden participation in digital assets without the operational complexities of self‑custody.

However, the trust structure introduces counterparty risk and management fees that are absent when investors hold Bitcoin directly. The fee competition seen in the U.S. spot Bitcoin etf market, where costs have fallen rapidly, may influence the pricing strategies of the Japanese trusts once they launch.

The development of these products may also encourage other Japanese securities firms to enter the crypto investment space, as indicated by the Nikkei survey. A wider adoption of crypto‑focused ETFs could further integrate digital assets into mainstream investment portfolios in Japan.

What to Watch

  • The FSA’s finalization of the regulatory framework for crypto investment trusts, which will determine the approval timeline for SBI and Rakuten’s products.
  • Any amendments to the draft law that classifies cryptocurrencies as financial products, particularly the potential enactment of the law in fiscal 2027.
  • Fee structures announced by SBI and Rakuten for their upcoming trusts, which will affect investor uptake.
  • Market reactions to the launch of similar products in the U.S. and Hong Kong, as they may set benchmarks for pricing and performance.