SBI Securities and Rakuten Securities, two of Japan's largest online brokerages for retail investors, reportedly plan to sell crypto investment trusts once Japan allows the products, giving ordinary investors a way to buy Bitcoin and Ethereum exposure through regular brokerage accounts.
Japan's Financial Services Agency, the country's financial regulator, is preparing rules that could allow crypto inside investment trusts and ETFs around 2028, Japan's news outlet Nikkei reported on May 16.
Nikkei said it surveyed 18 major securities firms, with 11 saying they would consider offering such products once the framework is ready.
Per the report, SBI plans to sell funds developed by SBI Global Asset Management, including ETFs and investment trusts made up of highly liquid cryptocurrencies such as Bitcoin and Ethereum.
Rakuten Securities plans to develop similar products with Rakuten Investment Management and other group companies, with trading expected through its smartphone app.
The products aren't available yet since Japan still has to change the legal wrapper for crypto funds. The FSA submitted a bill on April 10 to amend the Financial Instruments and Exchange Act and the Payment Services Act, a step toward treating crypto more like an investment product than only a payment asset.
The reported fund plan would still need changes to Japan's investment trust rules before mutual funds or ETFs can hold cryptocurrencies.
- Tax is another barrier, since crypto profits in Japan can currently be taxed at rates as high as 55%, while regulators have been discussing a flat 20% rate closer to stocks.