SBI, Rakuten to Offer Bitcoin and Ethereum Trusts in Japan

SBI Securities and Rakuten Securities are preparing in-house Bitcoin and Ethereum investment trusts for retail customers in Japan. The funds will let investors buy units in vehicles that hold the underlying digital assets rather than buying coins directly on exchanges.

SBI Global Asset Management will develop and distribute the SBI trusts within the group. SBI has set a target of about ¥5 trillion in assets within three years of launch. Rakuten Investment Management will distribute the Rakuten trusts and plans to make the products tradable inside its smartphone apps so clients can buy and sell them the same way they trade other securities.

Both groups already operate licensed crypto exchanges, so custody services, trading infrastructure and regulatory relationships are largely in place for the new products.

Japan’s Financial Services Agency is reviewing rule changes to allow investment trusts and exchange-traded funds to hold crypto under the Investment Trust Act. The regulator could approve spot crypto ETFs under that framework as soon as 2028. Some analysts estimate the potential market for such products in Japan at roughly $6.4 billion.

A survey of 18 financial firms found 11 would consider developing similar crypto trust products once the regulatory framework is clarified. Several major securities and banking groups have opened internal research projects or task forces on product development and distribution.

The trusts will let customers add Bitcoin or Ethereum exposure through existing brokerage accounts without opening a separate exchange account or managing private keys. The products are structured to feel similar to mutual funds or other listed investment products, with custody and reporting provided by the issuing firms.

Holding units in a trust does not give investors direct ownership of the underlying coins. The trusts will carry management fees and counterparty risk that do not exist with self-custody. Fee levels and the regulator’s review process are expected to influence investor demand; competition among U.S. ETF issuers reduced fees and helped rapid asset inflows after spot Bitcoin ETFs launched there in early 2024.

SBI’s asset target and Rakuten’s app-first distribution approach set early commercial benchmarks. Wider uptake will depend on final regulatory rules, approval timelines and the fee structures issuers set.