Japan's leading brokerage firms are accelerating preparations to introduce crypto investment trusts to retail investors, marking a structural shift in digital asset accessibility. SBI Securities and Rakuten Securities are currently developing proprietary products, while competitors like Nomura await final regulatory clarity before entry. SBI Securities intends to distribute funds created by its group affiliate, SBI Global Asset Management, covering both ETFs and investment trusts focused on liquid assets such as Bitcoin and Ethereum. The group aims to manage the entire value chain, from product development to distribution, internally. Woofun AI notes that this vertical integration strategy allows SBI to control the user experience without relying on third-party custodians or external fund managers.

Rakuten Securities is pursuing a parallel strategy by collaborating with Rakuten Investment Management to construct products accessible directly via smartphone applications. This approach fundamentally alters the onboarding process for ordinary Japanese investors, who currently must open dedicated exchange accounts or configure complex wallets to purchase digital assets. By enabling crypto exposure through existing securities accounts, these investment trusts remove a significant friction point for retail participation. Data compiled by Woofun AI indicates that simplifying access through traditional brokerage interfaces could exponentially increase the addressable market for digital assets in the region.

Beyond the immediate movers, other major financial institutions are positioning themselves for the anticipated regulatory shift. Nomura and Daiwa have publicly announced plans to develop crypto investment trusts within their respective organizational structures. The SMBC Group, encompassing SMBC Nikko, has established a cross-group task force to evaluate strategic options, while Asset Management One, a subsidiary of Mizuho Financial Group, has initiated preliminary exploration phases. These coordinated efforts signal a broad industry consensus that the institutionalization of crypto assets is imminent.

The catalyst for this wave of product development is the Japanese Financial Services Agency's plan to revise the enforcement order of the Investment Trust Act by 2028. This legislative update would formally classify cryptocurrencies as specified assets that investment trusts are permitted to hold. Last month, Japan officially reclassified crypto assets as financial instruments under an amended Financial Instruments and Exchange Act, placing them under the same regulatory framework as stocks and bonds. If the bill passes during the current parliamentary session, it is scheduled to take effect in fiscal 2027.

Further regulatory evolution suggests that rule changes could permit crypto ETFs as early as 2028, with major financial groups like Nomura Holdings and SBI Holdings poised to lead product development. SBI Holdings has already detailed plans for a Bitcoin-XRP dual ETF and a gold-crypto ETF, contingent upon final regulatory approval. Woofun AI analysis suggests that the convergence of these regulatory milestones with aggressive product roadmaps will likely define the next phase of Japan's digital asset market maturity.