Japan's SBI Securities, Rakuten Securities plan to offer crypto investment trusts

Two major Japanese securities firms plan to introduce cryptocurrency investment trusts once the Financial Services Agency finalizes the regulatory framework for such products, Nikkei Asia reported.

SBI Securities, the online brokerage business and investment banking unit of SBI Group, one of Japan’s largest financial companies and Rakuten Securities, the online broker subsidiary of Japan’s Rakuten Group internet conglomerate, will offer investment vehicles that allow customers to access crypto through their existing accounts. The products will make it easier for clients to gain exposure to the industry.

In a Nikkei survey of 18 companies, another 11 firms, including Nomura Securities, Daiwa Securities and Mizuho Securities, said they plan to consider entering the market when the regulatory process is finished.

The offerings will include exchange-traded funds (ETFs) and be developed by firms within the broader holding groups, the newspaper reported. Spot crypto ETFs were approved in the U.S. in January 2024, and those investing in bitcoin now hold more than $100 billion in net assets, according to SoSoValue data.

In early April, the Japanese government approved a draft amendment classifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act, rather than treating them as payment tools. If passed by parliament, the law could take effect in fiscal 2027.