Major Japanese Brokerages SBI, Rakuten, and Nomura Set Sights on Cryptocurrency Investment Trusts
Leading Japanese brokerage firms are competing to introduce crypto investment trusts to everyday investors, with regulatory framework expected to permit cryptocurrency-holding funds by 2028.
Leading brokerage firms in Japan are gearing up to introduce cryptocurrency investment trusts to everyday investors, with SBI Securities and Rakuten Securities currently building their products internally, while competitors such as Nomura are positioning themselves to join the market following regulatory approval.
According to a Nikkei report published on Sunday, SBI Securities is preparing to offer funds created by its affiliated entity SBI Global Asset Management, featuring both exchange-traded funds and investment trusts that concentrate on highly liquid cryptocurrencies including Bitcoin and Ethereum. The organization aims to manage the entire process from creation to sales within its own structure.
Taking a comparable route, Rakuten Securities is collaborating with Rakuten Investment Management to create offerings that can be traded seamlessly via mobile applications, as detailed in the report.
This development represents a major transformation in the way everyday Japanese investors can gain access to cryptocurrency markets. At present, purchasing digital currencies necessitates establishing a specialized exchange account or creating a digital wallet. The introduction of investment trusts would enable crypto market exposure using existing brokerage accounts, effectively eliminating a significant obstacle to retail investor engagement.
Nomura, Daiwa, SMBC moving toward crypto funds
Within the category of major financial institutions, both Nomura and Daiwa have publicly revealed intentions to create cryptocurrency investment trusts through their respective corporate groups, according to Nikkei's reporting. SMBC Group, which encompasses SMBC Nikko, has established an inter-group working committee to assess its strategic alternatives, while Asset Management One, operating under Mizuho Financial Group, has initiated initial research efforts.
This development is occurring as Japan's Financial Services Agency works toward amending the enforcement order of the Investment Trust Act by 2028, a revision that would officially include cryptocurrencies among the designated assets that investment trusts are permitted to hold.
In the previous month, Japan officially recategorized crypto assets as financial instruments through an amended Financial Instruments and Exchange Act, placing them within the identical regulatory framework governing stocks and bonds. The legislation, should it receive approval during the present parliamentary session, is anticipated to become effective in fiscal 2027.
Japan to allow spot crypto ETFs
Japan is additionally reportedly evaluating regulatory modifications that may permit cryptocurrency ETFs as soon as 2028, with prominent financial institutions including Nomura Holdings and SBI Holdings positioned among the initial firms expected to launch such offerings.
SBI Holdings has previously revealed its roadmap for a Bitcoin-XRP combination ETF alongside a gold-cryptocurrency ETF, subject to obtaining regulatory authorization.