Japanese Companies SBI and Rakuten Are Creating Their Own Crypto Funds
- Amid potential legislative changes, Japanese brokerage companies are creating their own cryptocurrency-based investment funds.
- SBI Securities and Rakuten Securities plan to independently develop products and sell them directly to retail investors.
According to Nikkei Asia, the two largest Japanese online brokerage firms are developing their own cryptocurrency-based investment funds and plan to sell them to retail investors.
SBI Securities will distribute funds created by its subsidiary SBI Global Asset Management. The fund lineup will include both ETFs and investment trusts linked to liquid assets such as Bitcoin and Ether.
Rakuten Securities is applying a similar approach and will offer products designed for trading through a mobile application via Rakuten Investment Management.
Of the 18 major Japanese brokerage firms surveyed by Nikkei, another 11 stated that they would consider creating crypto investment products after a regulatory framework is developed.
Nomura Securities and Daiwa Securities have already announced plans to create funds within their groups, while SMBC Group has already formed an intergroup working group.
Asset Management One, the asset management company of Mizuho Financial Group, has also begun preliminary research.
It recently became known that Japan’s Financial Services Agency plans to revise the application of the Investment Trusts Act by 2028. This will officially add cryptocurrencies to the list of assets that investment trusts may hold.
In April, the Cabinet approved a bill to reclassify cryptocurrencies under the Financial Instruments and Exchange Act, which would subject them to the same regulatory regime as stocks and bonds.
If approved, the law will come into force as early as the 2027 fiscal year.
In this context, Japan Exchange Group CEO Hiromi Yamaji stated at the end of April that the Tokyo Stock Exchange could list cryptocurrency ETFs as early as 2027.
Nomura and SBI Holdings are expected to conduct the first listings, alongside their own investment trust products that are currently under development.
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