[Digital Today reporter Yoonseo Lee (이윤서)] Japan’s major online brokerages SBI Securities and Rakuten Securities are moving to develop in-house bitcoin and ethereum investment trusts for retail investors.

According to blockchain media outlet BeInCrypto on May 17 local time, the two companies are preparing to launch products that let investors buy exposure to the assets within existing securities accounts, without purchasing cryptocurrencies directly.

The key is changing the investment route. Until now, Japanese retail investors often had to open a separate exchange account or create a wallet to buy bitcoin or ethereum directly. An investment trust, by contrast, involves buying units of a fund that holds the actual cryptocurrencies. That allows investors to access it through the same securities account they use to trade stocks, bonds and funds. The experience is closer to a traditional mutual fund than exchange trading.

SBI Securities plans to sell a product developed by its affiliate SBI Global Asset Management. SBI Global Asset Management set a target of 5 trillion yen, or about 47.2 trillion won, in assets within 3 years of launch. SBI is considering a structure in which the group handles the entire process in-house, from product design to sales.

Rakuten Securities is also preparing a similar product through Rakuten Investment Management. Rakuten is considering a structure in which users trade the product directly within a smartphone app. That reflects the fact that retail demand for crypto investing is already moving around mobile use.

Interest across Japan’s financial industry is also growing. In a survey by the Nikkei of 18 companies, 11 firms including Nomura, Daiwa and Mizuho Securities said they would consider entering the market once a regulatory framework is in place.

Nomura and Daiwa suggested they may move to develop crypto trust products if the system becomes clearer. The SMBC group formed a related task force, and Asset Management One, an asset manager under Mizuho, began an initial review. Major financial firms have begun preparations even before rules are finalised.

Behind the move is a regulatory overhaul by Japan’s Financial Services Agency (FSA). The FSA is reported to be reviewing rules that would allow investment trusts and exchange-traded funds (ETFs) to include cryptocurrencies under the Investment Trust Act. In the market, there is talk that spot-based crypto ETFs could be approved by 2028. There was also a projection that the related market could reach about $6.4 billion.

Japan has recently been revising its system to reclassify cryptocurrencies as financial products. As a result, regulations such as a ban on insider trading based on non-public information and an annual disclosure obligation for issuers are expected to apply. As Japan brings cryptocurrencies under the Financial Instruments and Exchange Act framework, connections with the existing securities and asset management industry are also widening.

Market reaction is focused on improved access. With millions of users already holding SBI or Rakuten accounts, they can gain bitcoin and ethereum exposure without opening a separate exchange account. Investors do not need to learn how to use an exchange, and concerns about security incidents on unfamiliar platforms also diminish.

But there are limits. Because the approach involves holding units in an investment trust, investors do not directly own bitcoin. That can create management fees and counterparty risk. In the United States, fees fell quickly as asset managers competed after the launch of spot bitcoin ETFs, and adoption also accelerated. In Japan, the FSA’s review direction and the fee structure SBI and Rakuten can offer are cited as variables that will determine the pace of expansion.

With this trend, Japan’s crypto market is increasingly likely to expand from an exchange-centred structure to regulated investment channels led by brokerages and asset managers. If the investment trusts are launched, Japanese retail investors’ approach to bitcoin and ethereum is expected to shift in part from direct purchases to investing through financial products.

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