Japan's largest online brokerages are making crypto investing as routine as buying a mutual fund. SBI Securities and Rakuten Securities are each developing in-house cryptocurrency investment trusts, according to Nikkei Asia, giving Japanese retail investors exposure to Bitcoin and Ethereum without needing a crypto wallet.
This marks a significant shift for Japan, one of crypto's most active retail markets, which has lacked the packaged investment products now popular in the US and Hong Kong.
Instead of signing up for a crypto exchange or managing private keys, retail investors can buy into a trust through their existing brokerage account. The trusts will track the prices of major digital assets, primarily Bitcoin and Ethereum.
Both firms are crypto veterans. SBI Securities is part of the SBI Group, which operates SBI VC Trade, a licensed crypto exchange. Rakuten Securities sits under the Rakuten Group alongside Rakuten Wallet, another regulated platform. They already have the infrastructure and regulatory relationships in place.
Japan's Financial Services Agency has been clarifying its crypto regulatory framework since 2019, creating a structured environment for digital assets. The approval of spot Bitcoin ETFs in the US earlier this year signaled that traditional finance has embraced crypto, with Hong Kong following suit.
For Japanese retail investors, millions with SBI or Rakuten brokerage accounts could soon add Bitcoin or Ethereum exposure through their existing accounts. No new signups, no learning curve, no security anxieties.
The risk: investors hold units in a trust that holds Bitcoin, not the asset directly. This introduces counterparty considerations and management fees absent with direct ownership.
Watch for Japan's FSA response to the filings and the fee structures SBI and Rakuten attach. In the US, the fee war among spot Bitcoin ETF issuers drove costs down rapidly, fueling adoption.