Japan's Brokerages Prepare Crypto Investment Trusts for Retail Investors
The landscape for cryptocurrency investing in Japan is on the brink of a major transformation. Major brokerages including SBI Securities, Rakuten Securities, Nomura Holdings, Daiwa Securities, and SMBC Group are actively preparing to launch crypto investment trusts aimed at retail investors. This strategic push comes as Japan’s Financial Services Agency (FSA) moves to formally allow crypto-holding funds by 2028, a change that will fundamentally alter how ordinary Japanese investors access digital assets.
Currently, buying cryptocurrencies like Bitcoin or Ethereum requires opening a dedicated exchange account or setting up a personal wallet—a process that many retail investors find cumbersome or intimidating. Investment trusts, by contrast, will allow crypto exposure through existing securities accounts, mirroring the ease of buying stocks or bonds. This removal of friction is expected to unlock significant retail demand and bring crypto investing into the mainstream.
Key Players and Their Plans
SBI Securities and Rakuten Securities Lead the Charge
SBI Securities, part of the SBI Group, is taking an integrated approach. According to a report by Nikkei, the firm plans to sell funds developed by its group company SBI Global Asset Management. The products will span both exchange-traded funds (ETFs) and investment trusts that focus on highly liquid assets such as Bitcoin and Ethereum. By handling product development, management, and distribution entirely in-house, SBI aims to streamline costs and offer competitive fees.
Rakuten Securities is adopting a similar strategy, working closely with Rakuten Investment Management to build products that can be traded directly through smartphone apps. Rakuten’s massive user base of retail investors—already accustomed to the company’s ecosystem of e-commerce, banking, and securities—could provide a ready market for crypto investment trusts. The firm is known for its technology-first approach, and its crypto fund products are expected to feature user-friendly interfaces and low minimum investment thresholds.
Nomura, Daiwa, and SMBC Move Toward Crypto Funds
Among the larger traditional brokerages, Nomura Holdings and Daiwa Securities have both announced plans to develop crypto investment trusts within their respective groups. Nomura, Japan’s largest brokerage by assets, has a history of exploring digital asset services through its subsidiary Laser Digital. The firm is positioning itself to offer regulated crypto products that appeal to risk-averse retail and institutional investors alike.
Daiwa Securities, another major player, is similarly preparing its group to launch crypto trusts as soon as the regulatory environment allows. SMBC Group, which includes SMBC Nikko, has set up a cross-group task force to evaluate its options. This task force is responsible for assessing operational requirements, compliance frameworks, and potential partnerships. Meanwhile, Asset Management One, a subsidiary of Mizuho Financial Group, has begun preliminary exploration into crypto investment products, signaling that even conservative financial institutions see long-term potential in the space.
Regulatory Framework and Timeline
The catalyst for this race is a planned revision to Japan’s Investment Trust Act. The FSA intends to amend the enforcement order of the act by 2028, formally adding cryptocurrencies to the list of specified assets that investment trusts can hold. This change would remove a critical legal barrier that has prevented asset managers from including crypto in regulated fund products.
Japan has been incrementally tightening its crypto regulatory stance while also creating pathways for legitimate innovation. Last month, the country formally reclassified crypto assets as financial instruments under an amended Financial Instruments and Exchange Act. This reclassification brings cryptocurrencies under the same regulatory umbrella as stocks, bonds, and derivatives—a move that is expected to boost investor confidence and facilitate the entry of traditional financial institutions.
The bill, if passed in the current parliamentary session, is expected to take effect in fiscal 2027. That timeline means brokerages have approximately two years to finalize product designs, obtain necessary approvals, and set up distribution channels. The early movers—SBI and Rakuten—are already well ahead of this timeline, having started product development internally.
Implications for Retail Investors
For Japan’s retail investors, the arrival of crypto investment trusts represents a paradigm shift. Historically, gaining direct exposure to cryptocurrencies required navigating volatile and often illiquid exchange markets, with added concerns about security and custody. Investment trusts solve these problems by offering a regulated, professionally managed vehicle that holds crypto assets under custodial arrangements mandated by the FSA.
Investors can expect lower fees compared to buying individual coins on exchanges, as fund managers can benefit from economies of scale. Additionally, the ability to hold crypto within a securities account simplifies tax reporting and portfolio tracking. Many Japanese investors already hold equities, bonds, and mutual funds through brokerages like SBI and Rakuten; adding crypto funds to the same platform will reduce the learning curve and attract a broader demographic.
The move also addresses concerns around self-custody risks. The collapse of several crypto exchanges globally has highlighted the dangers of leaving assets on unregulated platforms. Regulated investment trusts, backed by Japan’s robust financial infrastructure, offer a safer alternative that aligns with the conservative preferences of Japanese retail savers.
Broader Market Context and International Comparisons
Japan’s initiative mirrors developments in other major economies. The United States approved spot Bitcoin ETFs in early 2024, sparking a wave of institutional adoption and record inflows. Hong Kong followed with its own spot crypto ETFs, and Australia and Brazil have also introduced regulated crypto fund products. Japan, however, has taken a more measured approach, prioritizing investor protection and market stability over speed.
The FSA’s 2028 target allows ample time for testing and refinement. It also gives Japanese exchanges and asset managers the chance to learn from international peers. For example, the US ETFs saw massive demand but also experienced periodic outflows during market downturns—a pattern Japanese regulators are keen to understand before full rollout.
SBI Holdings has already outlined plans for innovative products such as a Bitcoin-XRP dual ETF and a gold-crypto composite ETF, pending regulatory approval. These products would offer diversification benefits and attract investors who want exposure to both crypto and traditional safe-haven assets under a single fund. Such ideas highlight the creativity that could emerge once the regulatory framework is finalized.
The reclassification of crypto as a financial instrument also opens the door for other innovations, such as tokenized securities and decentralized finance (DeFi) products integrated with traditional banking. The FSA has signaled its intention to balance innovation with stringent anti-money laundering (AML) and know-your-customer (KYC) requirements. Last month, the regulator urged real estate and crypto sectors to tighten AML checks on property deals, indicating a broadening of oversight to cover all digital asset transactions.
Moreover, the entry of major brokerages like Nomura and Daiwa could trigger a consolidation wave in Japan’s crypto exchange market. SBI Holdings has already considered acquisitions, such as a potential deal with Bitbank, as the market prepares for tighter competition. Smaller exchanges may be forced to partner with established financial groups to survive, while larger players will leverage their brand trust and distribution networks to dominate the retail segment.
For the global crypto industry, Japan’s move is a positive signal. As the world’s third-largest economy, Japan’s embrace of regulated crypto investment vehicles could set a precedent for other Asian markets, particularly South Korea and Taiwan, which are also evaluating similar frameworks. The ripple effects may accelerate mainstream adoption in a region that has historically been cautious about digital assets.
In summary, Japan’s top brokerages are not just responding to a future regulatory change—they are actively shaping the future of retail crypto investing. By developing in-house products, forming cross-group task forces, and innovating with dual-asset ETFs, these firms are positioning themselves at the forefront of a new era in finance. The next two years will be critical as the FSA finalizes its rules and firms prepare to launch what could become the most accessible and trusted crypto products ever offered to Japanese retail investors.
With major players like SBI, Rakuten, Nomura, Daiwa, and SMBC all in the race, the competition will likely lead to better products, lower costs, and greater awareness among the general public. The era of crypto as a niche asset class accessible only through specialized exchanges may soon be over in Japan, replaced by a seamless, regulated, and mainstream investing experience.
Source: Cointelegraph News