Japan's SBI, Rakuten Securities Move to Launch Crypto Investment Trusts for Retail Investors

Japan's major online brokerages are moving to launch cryptocurrency investment trust products as they target a broader retail investor market.

SBI Securities has started developing exchange-traded funds and investment trust products linked to Bitcoin and Ether through its affiliate SBI Global Asset Management, Nikkei reported on May 17, citing The Block.

SBI plans to establish an in-house structure covering the entire process from product design to sales.

Rakuten Securities is also developing its own cryptocurrency investment trust products through affiliate Rakuten Investment Management. The products are being designed for direct trading through a smartphone app.

The moves underscore a broader push by Japan's financial industry to bring crypto assets into the regulated mainstream.

Of 18 major Japanese securities firms surveyed by Nikkei, 11 said they are considering launching cryptocurrency investment trusts once the regulatory framework is in place.

Nomura Securities and Daiwa Securities have already disclosed plans to develop related products, while SMBC Group has set up a dedicated task force.

Japan's Financial Services Agency is seeking to revise the enforcement ordinance of the Investment Trust Act by 2028. The amendment would formally add crypto assets to the list of assets eligible for inclusion in investment trusts.

Japan's government in April also approved a bill to reclassify crypto assets under the Financial Instruments and Exchange Act. If parliament passes the bill during the current session, a regulatory framework similar to that for stocks and bonds could take effect as early as 2027.

SBI has previously disclosed plans to launch Bitcoin- and XRP-based ETFs, as well as hybrid products combining gold and crypto assets.