SBI, Rakuten Building Crypto Trusts and ETFs for Retail

SBI and Rakuten are building in-house crypto investment trusts and exchange-traded funds tied to bitcoin and ether for sale to retail investors in Japan. SBI Securities will distribute funds created by SBI Global Asset Management, covering both ETFs and investment trusts linked to those cryptocurrencies. Rakuten Securities is developing equivalent products through Rakuten Investment Management, designed to be purchased via its smartphone app.

Regulators are updating rules that would allow such products. The Financial Services Agency plans to revise the enforcement order of the Investment Trust Act by 2028 to formally list cryptocurrencies as assets that investment trusts can hold. The cabinet approved a bill in April to reclassify crypto under the Financial Instruments and Exchange Act; if the Diet passes the bill in the current session, the law could take effect in fiscal 2027 and place crypto under the same securities regime as stocks and bonds. Hiromi Yamaji, chief executive of the Tokyo Stock Exchange, has said the exchange could list crypto ETFs as early as 2027 if legal reforms and tax treatment are finalized in the current Diet session.

Several other large brokers are preparing products. Nomura Securities and Daiwa Securities have announced plans to develop investment trusts within their groups. SMBC Group, including SMBC Nikko, has formed a cross-group task force. Asset Management One, Mizuho Financial Group's asset manager, has begun preliminary research. In a survey of 18 major brokerage firms, 11 indicated they would consider offering crypto investment trust products once rules are finalized.

SBI Global Asset Management has set an internal target of about 5 trillion yen in assets within three years of product launch. SBI has also outlined plans for a dual bitcoin-and-XRP ETF and a fund combining gold with crypto exposure, both subject to regulatory approval. For brokers, offering investment trusts and ETFs provides a distribution-based route into crypto that earns fees and relies on client flows rather than taking principal trading risk.

Today, retail investors in Japan typically buy digital assets through dedicated crypto exchanges or private wallets. Investment trusts and ETFs would let customers gain crypto exposure through existing brokerage accounts used for stocks and bonds, simplifying access.

Not all firms are expanding trading desks. Nomura's Swiss-based crypto trading arm, Laser Digital, reported losses in a recent quarter tied to market volatility, and the firm reduced its trading exposure earlier this year while maintaining a long-term commitment to the sector.

Market participants say many brokerages are waiting for final regulatory texts and tax guidance before launching products. Once the legal framework and tax treatment are clear, major brokers are prepared to offer retail-facing investment trusts and ETFs for bitcoin, ether and other digital assets.