SBI and Rakuten Move Toward Launching Bitcoin and Ethereum Investment Trusts in Japan
Japan's large brokerages are stepping deeper into digital assets, signaling a shift in how crypto is distributed beyond crypto-native exchanges. SBI and Rakuten are accelerating preparations for investment trusts focused on Bitcoin (BTC) and Ethereum (ETH), a move that would bring regulated crypto exposure closer to mainstream brokerage products. AD Nomura, Daiwa, and several firms linked to Mizuho are also exploring similar structures as the country's Financial Services Agency (FSA) continues to refine its regulatory framework.
Institutional appetite is building. Nomura's 2026 survey indicates nearly 80% of professional investors plan to allocate 2% to 5% of their portfolios to crypto, reinforcing the view that digital assets are increasingly being treated as a standardized allocation rather than a niche trade.
Regulatory reforms are a key catalyst. Japan approved changes in April 2026 that place major cryptocurrencies under the Financial Instruments and Exchange Act, tightening disclosure expectations and introducing stronger insider-trading restrictions. The reforms have helped reduce compliance uncertainty and boosted investor confidence by aligning crypto more closely with traditional financial-product standards. Retail sentiment also improved after crypto tax treatment shifted from rates as high as 55% to a flatter 20% structure.
Even with clearer rules, the pace of product rollout remains a constraint. Market participants still flag that slower ETF timelines could limit how quickly adoption broadens at the retail level.
The market is also evolving in behavior. Japan's crypto activity has historically leaned toward leveraged trading and momentum-driven speculation, but regulators and new portfolio-oriented products are nudging participation toward longer-term allocation. Industry forecasts point to continued expansion, with Japan's crypto market projected to grow from about $368 million to $1.17 billion by 2033.
Bottom line: With reforms and major brokerages moving into crypto investment products, Japan is pushing digital assets further into mainstream finance. Sustained adoption will depend on whether participation holds up through extended volatility, even as institutional demand continues to rise.
