Japan’s largest online brokerages are moving into digital assets. SBI Securities and Rakuten Securities are building in-house investment funds in Bitcoin and Ethereum for retail clients.
This shift could reshape how millions of Japanese investors access cryptocurrencies. Here’s what’s in the plan and why it’s important now.
SBI and Rakuten are building on-premise investment funds for Bitcoin and Ethereum in Japan
A cryptocurrency investment fund is a regulated fund that holds digital assets such as Bitcoin, allowing investors to purchase units rather than the coins themselves.
Today, most Japanese users still need a separate exchange account or wallet to purchase cryptocurrencies directly.
according to NikkiThis trust removes that friction. Investors can get Bitcoin And exposure to Ethereum through brokerage accounts they already use for stocks, bonds, and funds. The product will be closer to buying a mutual fund than trading on a stock exchange.
SBI Securities plans to sell products developed by group company SBI Global Asset Management. This company is targeting assets worth approximately 5 trillion yen (about 32 billion US dollars) within three years of its launch.
SBI intends to manage the entire chain internally, from product design to distribution.
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Rakuten Securities is following a similar path through Rakuten Investment Management. The company wants customers To trade these products directly within their smartphone applicationsmatching how retail crypto activity actually works.
Both groups already operate licensed exchanges, so the infrastructure and regulatory relationships are largely in place.
Momentum reflects clearer rules going forward. In a Nikkei survey of 18 companies, 11 others, including Nomura, Daiwa and Mizuho Securities, said they would consider entering once the regulatory framework is finalized.
This response shows widespread interest from TradFi, even before the rules are completed.
Nomura and Daiwa have He pointed out It plans to develop cryptocurrency trusts once the framework is clear. SMBC Group has formed a working group, while Asset Management One under the leadership of Mizuho has begun early research.
Japan’s Financial Services Agency is leading this change. that it It is said Weighing rules that would allow mutual funds and exchange-traded funds to hold cryptocurrencies under the Mutual Funds Act.
Spot cryptocurrency ETFs could be approved by 2028, with analysts estimating the market could reach around $6.4 billion.
Reform is linked to a broader policy shift. Japan recently Reclassification of cryptocurrencies as a financial instrument-Add stronger market rules.
These include annual disclosure requirements and insider trading restrictions, which bring digital assets closer to regulated securities.
What this means for investors and the market
The timing follows a global pattern. Bitcoin ETFs It will launch in the US in early 2024These funds now hold assets worth tens of billions of dollars. Hong Kong It added its own Bitcoin and Ethereum products Soon after.
Japan now wants to bring cryptocurrencies closer to its mainstream wealth management industry.
For individual investors, this means familiar safeguards regarding custody, disclosure and reporting, handled through regulated financial groups they already trust.
The benefits are practical. Millions of people who already have SBI or Rakuten accounts can add Bitcoin or Ethereum exposure without new sign-ups.
There is no learning curve around exchanges and no worry about security breaches on unfamiliar platforms.
The trade-off is real too. Holding the units in a trust means that investors do not own the bitcoin directly.
This structure adds management fees and counterparty considerations that do not exist with direct ownership.
Fees will be a major factor to keep an eye on. In the United States, competition among ETF issuers has rapidly reduced costs and boosted adoption.
How the FSA responds to requests, and what fees SBI and Rakuten charge, could determine how quickly Japanese investors move.
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