Japan’s largest financial institutions are moving to develop cryptocurrency investment trusts for retail investors, positioning themselves to launch products as regulators work toward establishing a clearer framework for digital asset funds. SBI Securities, Rakuten Securities, and several other major firms have announced preparations, according to a report from Nikkei.

SBI and Rakuten Lead Product Development

SBI Securities plans to distribute exchange-traded funds and investment trusts developed by SBI Global Asset Management, with an initial focus on liquid assets such as Bitcoin and Ethereum. SBI Holdings has also proposed a dual Bitcoin-XRP ETF and a gold-cryptocurrency ETF, both of which await regulatory approval.

Rakuten Securities is collaborating with Rakuten Investment Management on similar products that would be accessible through its smartphone trading applications. The approach aims to lower the barrier for retail investors who may be unfamiliar with dedicated cryptocurrency exchanges or digital wallets.

Nomura Securities, Daiwa Securities, SMBC Group, and Mizuho Financial Group are also preparing their own crypto investment trust offerings, signaling broad institutional interest in the emerging product category.

Regulatory Timeline Points to 2028

Japan’s Financial Services Agency (FSA) is working to revise the Investment Trust Act to permit cryptocurrencies as allowable assets within investment trust structures. The regulatory overhaul could be finalized by 2028, according to the Nikkei report.

Last month, Japan reclassified crypto-assets as financial instruments, aligning them with traditional securities frameworks. This reclassification represents a foundational step toward enabling regulated crypto fund products and could pave the way for cryptocurrency ETF approvals as early as 2028.

The development could significantly enhance retail accessibility to digital assets in Japan by allowing investors to gain crypto exposure through established brokerage platforms and existing securities accounts, rather than requiring them to open accounts on separate cryptocurrency exchanges.

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