TLDR
Japans biggest online brokerages are building in-house Bitcoin (BTC) and Ethereum (ETH) investment trusts to plug crypto directly into mainstream brokerage accounts.
- SBI Securities and Rakuten Securities are developing regulated BTC/ETH trusts that clients can buy like mutual funds via existing brokerage and smartphone apps.
- The move fits a broader Japanese overhaul, with regulators preparing to let investment trusts and ETFs hold crypto and to cut tax on crypto gains to around 20%.
- If launched at competitive fees and widely adopted, these products could become a sizable new demand channel for BTC and ETH, but timelines and regulation still matter.
Deep Dive
1. How The New Trusts Work
Reports from Nikkei and others say SBI Securities and Rakuten Securities are developing in-house Bitcoin and Ethereum investment trusts for retail investors, sold via their standard brokerage platforms and mobile apps. These products are regulated funds that hold BTC and ETH while investors buy units in the trust, similar to buying a mutual fund rather than coins on an exchange.
SBI plans to distribute products created by group firm SBI Global Asset Management, which is targeting roughly 5 trillion (about 32 billion dollars) in assets within three years of launch, according to multiple reports including Yahoo Finance and TradingView. Rakuten is taking a similar in-house approach via Rakuten Investment Management, with trading designed to happen inside its app environment.
Millions of Japanese investors who already use SBI or Rakuten for stocks and funds could add BTC/ETH exposure without learning exchanges, wallets, or self-custody.
2. Japans Regulatory And Tax Shift
This push is possible because Japan is reshaping how it treats digital assets in its financial rulebook. A recent bill reclassifies crypto as a financial product under the Financial Instruments and Exchange Act, adding disclosure and insider-trading rules similar to stocks.
Separately, the Financial Services Agency is working to amend the Investment Trust Act so that investment trusts and eventually ETFs can hold crypto, with a target around 2028. The same package is expected to align the tax treatment of crypto with stocks by moving from a top rate near 55% to a flat 20 percent on gains. Bitcoin.com reports that 11 other major brokerages, including Nomura and Daiwa, are already studying similar products pending final rules.
3. Impact On BTC, ETH And What To Watch
Structurally, these trusts lower friction for mainstream Japanese savers to allocate part of their portfolios to BTC and ETH inside familiar brokerage accounts. If SBIs multibillion-dollar AUM target is even partially met, it represents non-trivial incremental demand.
There are trade-offs. Investors get regulated custody through big financial groups but do not own the underlying coins, cannot self-custody, and will pay ongoing management fees. For BTC and ETH markets, flows will likely be slower and more wealth-management style than speculative exchange trading.
Key things to watch next:
- Final passage and details of the FSA rule changes, especially what assets are allowed and how tax is implemented.
- Announced fee levels and product lineups from SBI, Rakuten, and potential followers like Nomura and Daiwa.
- Whether spot crypto ETFs on the Tokyo Stock Exchange follow, which could broaden institutional and pension flows.
If regulation lands as proposed and fees are competitive, Japan could evolve into another steady, regulated demand channel for BTC and ETH alongside the US and Hong Kong ETF markets.
Conclusion
Japans brokerage-built BTC and ETH trusts show crypto moving deeper into traditional wealth management rather than staying only on exchanges. The combination of easier access, clearer rules, and potentially lower taxes could gradually pull more Japanese capital into Bitcoin and Ethereum, with the pace driven by regulation, product design, and investor appetite for fee-based, custodial exposure over direct ownership.
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