SBI Securities and Rakuten Securities, Japan's largest online brokerages, are developing in-house Bitcoin and Ethereum investment trusts for retail customers. According to Nikkei, these trusts allow investors to gain crypto exposure through their existing brokerage accounts, eliminating the need for separate exchange accounts or wallets. SBI Securities plans products from its group asset manager, targeting roughly ¥5 trillion yen ($32 billion) in assets within three years. Rakuten Securities aims to integrate trading directly into its smartphone app. This move follows a broader regulatory shift: Japan's Financial Services Agency (FSA) is weighing rules under the Investment Trust Act to allow crypto investment trusts and ETFs, with spot crypto ETFs potentially approved by 2028 and estimated inflows of $6.4 billion. The reform builds on Japan's recent reclassification of crypto as a financial instrument under the Financial Instruments and Exchange Act, introducing disclosure requirements and insider trading bans. For investors, the trusts offer familiarity, protection, and ease of access, but they also involve management fees and lack direct ownership of the underlying assets. Competition among issuers is expected to influence fee structures and adoption rates.

Key facts

• SBI Securities targets ¥5 trillion ($32B) in crypto trust assets within three years.
• Rakuten Securities to integrate Bitcoin and Ethereum trusts into its smartphone app.
• Japan's FSA may allow crypto ETFs under Investment Trust Act by 2028.
• Crypto reclassified as financial instrument under Japan's Financial Instruments and Exchange Act.
• 11 firms including Nomura and Daiwa plan to enter once regulatory framework is complete.

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