Japan’s top brokerages prepare crypto investment trust launch

Japan’s leading securities firms are preparing to enter the cryptocurrency investment market as the country moves closer to introducing a new regulatory framework for digital assets.

According to a report by Nikkei Asia, major brokerage firms, including SBI Securities and Rakuten Securities, plan to introduce cryptocurrency investment trusts once Japan’s Financial Services Agency finalises the rules governing such products.

The move signals growing institutional interest in digital assets in Japan and follows the rapid expansion of crypto exchange-traded funds in the United States.

Major firms prepare crypto products

SBI Securities, part of SBI Group, and Rakuten Securities, a subsidiary of Rakuten Group, are expected to offer investment products that allow retail and institutional clients to gain exposure to cryptocurrencies through existing brokerage accounts.

The products are likely to include cryptocurrency investment trusts and exchange-traded funds linked to digital assets such as bitcoin.

By offering crypto exposure through traditional investment accounts, the companies aim to simplify access for customers who may not want to use dedicated cryptocurrency exchanges or manage digital wallets directly.

The report said the investment products will be developed by companies within the wider financial groups rather than by the brokerage businesses alone.

More Japanese brokerages consider entry

Interest in crypto investment products is expanding across Japan’s financial sector.

In a survey conducted by Nikkei, 11 additional firms said they are considering entering the market after the regulatory framework is completed. These companies include Nomura Securities, Daiwa Securities and Mizuho Securities.

The participation of large financial institutions could broaden access to digital assets for mainstream investors in Japan and increase competition within the country’s investment market.

Japanese financial groups have taken a cautious approach to cryptocurrencies in recent years because of regulatory uncertainty and past market volatility. However, the planned legal changes are encouraging firms to prepare new investment offerings.

Regulatory reform drives market development

Japan is currently revising how cryptocurrencies are classified under national financial laws.

In early April, the Japanese government approved a draft amendment that would classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act. At present, cryptocurrencies are mainly treated as payment tools.

If approved by parliament, the revised law could take effect during fiscal 2027.

The proposed changes would place digital assets under a regulatory framework similar to traditional securities products. This could strengthen investor protection measures and create clearer compliance standards for financial institutions offering crypto-related products.

The reforms are also expected to support the launch of regulated crypto investment products, including spot cryptocurrency exchange-traded funds (ETFs).

US crypto ETF market influences Japan

Japan’s planned crypto investment products follow strong growth in the United States market.

Spot cryptocurrency ETFs were approved in the US in January 2024. Since then, bitcoin ETFs have attracted significant investor demand.

According to data provider SoSoValue, US spot bitcoin ETFs now hold more than $100 billion in net assets.

The rapid growth of the US market has increased interest among financial firms in other regions, including Japan, where regulators are now reviewing similar investment structures.

The introduction of crypto investment trusts and ETFs in Japan could mark a major shift in how traditional financial institutions participate in the digital asset industry.