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SBI and Rakuten Develop Crypto Investment Trusts for Japanese Retail Investors

Regulators target 2028 to let investment funds hold crypto directly.

Overview

  • SBI Securities and Rakuten Securities are building in-house trusts that aim to track Bitcoin and Ethereum and sell through their regular brokerage platforms.
  • The trusts would let clients buy units in their existing accounts and phone apps, removing the need to open a crypto exchange account or manage a wallet.
  • Japan’s Financial Services Agency is preparing changes to the Investment Trust Act by 2028 to allow investment trusts and exchange-traded products to hold crypto assets.
  • Nomura, Daiwa, SMBC Group, and Mizuho’s Asset Management One are exploring similar products, and a cited survey found 11 of 18 brokerages may offer them once rules allow it.
  • Trust structures add counterparty risk and ongoing fees versus holding coins directly, and key next steps include FSA feedback on filings and clear details on custody and pricing.