Rebeca Moen
May 17, 2026 10:40
Major Japanese firms like SBI and Rakuten are developing crypto investment trusts as Japan reclassifies digital assets under securities law.
Japan’s financial heavyweights SBI Securities, Rakuten Securities, and Nomura are preparing to introduce crypto investment trusts, marking a significant shift in how retail investors in the country access digital assets. The move comes as Japan’s Financial Services Agency (FSA) progresses toward regulatory changes allowing cryptocurrencies to be included in investment vehicles like trusts and ETFs by 2028.
SBI and Rakuten are leading the charge, with both companies actively developing crypto-related products in-house, according to a report by Nikkei. SBI plans to offer funds through its group company, SBI Global Asset Management, focusing on liquid assets like Bitcoin and Ethereum. Rakuten is similarly collaborating with Rakuten Investment Management to create crypto funds that will be accessible via smartphone apps, simplifying retail participation.
Lowering Barriers for Retail Investors
Currently, Japanese investors face high barriers to entering the crypto market, requiring dedicated exchange accounts or wallets to trade digital assets. Crypto investment trusts would allow exposure through existing securities accounts, making it easier for retail investors to diversify into crypto.
Nomura, Daiwa, and SMBC are also positioning themselves to enter the market. Nomura and Daiwa are reportedly working on internal crypto funds, while SMBC Group has created a task force to evaluate its options. Asset Management One, part of Mizuho Financial Group, has begun exploratory efforts, signaling broad interest from traditional financial institutions.
Regulatory Overhaul in Progress
These developments align with Japan’s broader regulatory overhaul of its crypto framework. In April 2026, the Cabinet submitted amendments to the Financial Instruments and Exchange Act (FIEA) to reclassify crypto-assets as financial products, treating them similarly to stocks and bonds. This reclassification strengthens investor protections and opens the door for crypto to be included in investment trusts and ETFs.
The FSA is also revising the Investment Trust Act to formally incorporate cryptocurrencies as eligible underlying assets by 2028. This is part of a multi-year regulatory roadmap that includes enhanced disclosure requirements and potential tax reforms. A proposed flat 20% tax rate on crypto gains, aligning with equities taxation, is under discussion.
Spot Crypto ETFs on the Horizon
In addition to investment trusts, Japan is exploring spot crypto ETFs, which could be approved by 2028. Companies like SBI and Nomura are already preparing product concepts, with SBI announcing plans for a Bitcoin-XRP dual ETF and a gold-crypto ETF, pending regulatory approval. If approved, these ETFs could be listed on the Tokyo Stock Exchange, offering institutional-grade products to retail investors.
What to Watch Next
The FIEA amendments are expected to be enacted later in 2026, with secondary rulemaking and supervisory frameworks finalized by 2027. For investors, the eventual rollout of crypto-inclusive trusts and ETFs could transform Japan’s retail market, providing simpler access to digital assets. Institutional players like SBI, Rakuten, and Nomura are well-positioned to capture early demand, but regulatory milestones over the next two years will be critical to watch.
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