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SBI and Rakuten to Launch Crypto Investment Trusts in Japan

Jake Vance
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2 min read
321 words
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Major Japanese financial institutions SBI Securities and Rakuten Securities have announced plans to offer cryptocurrency investment trust products to retail investors. This move follows a survey by The Nikkei involving 18 major brokerages, which revealed a growing institutional interest in digital asset vehicles. While SBI and Rakuten are leading the transition, other industry giants like Nomura Securities have expressed readiness to enter the market once a definitive regulatory framework is established by Japanese authorities.

Strategic Integration Within Financial Groups

The expansion into digital asset funds will be managed through internal collaboration within the respective financial groups. SBI Securities intends to distribute funds developed by SBI Global Asset Management. These products are expected to include Exchange-Traded Funds (ETFs) and investment trusts focused on high-liquidity assets, specifically Bitcoin (BTC) and Ethereum (ETH). By handling development and sales internally, the group aims to maintain rigorous oversight of the investment process.

  • SBI's focus remains on high-liquidity digital assets to ensure market stability.
  • Rakuten Securities plans to collaborate with Rakuten Investment Management for product creation.
  • Brokerages aim to integrate crypto trading into existing smartphone applications for ease of access.

Regulatory Outlook and Market Expansion

The trend toward crypto-based financial products is gaining momentum across the Japanese brokerage sector. Out of the 18 firms surveyed, 11 companies indicated they would consider launching similar offerings following the finalization of local regulations. This shift suggests a move toward the mainstreaming of crypto assets within traditional Japanese brokerage accounts, providing a more regulated environment for retail participants.

The introduction of these investment trusts marks a significant milestone for the Japanese crypto landscape. By providing exposure to blockchain-based assets through familiar investment structures, SBI and Rakuten are positioning themselves to capture the growing demand for diversified digital portfolios. As the regulatory environment clarifies, the participation of firms like Nomura could further solidify Japan's role as a major hub for institutional and retail cryptocurrency investment.

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