Japan’s crypto ETF to launch as early as 2027, with SBI and Rakuten leading the development of investment trusts

According to Nikkei Asia, on May 17, SBI Securities and Rakuten Securities are jointly developing a crypto-asset investment trust fund on their own, planning to sell it directly to retail investors. In late April, Hiroyoshi Yamaji, CEO of Japan Exchange Group (JPX), confirmed that if the current Diet session completes the relevant legal reforms and tax policy changes, the Tokyo Stock Exchange could list a crypto ETF as early as 2027.

SBI and Rakuten’s in-house development strategy

SBI Securities: Developed by SBI Global Asset Management, a group company, with SBI Securities responsible for distribution. The planned products include ETFs and investment trusts linked to liquid assets such as Bitcoin and Ethereum. The group handles every step end to end, from product development to distribution. SBI Global Asset Management has publicly stated a target of reaching about 5 trillion yen (approximately $32 billion) in AUM within three years after product launch. SBI also plans to launch Bitcoin and XRP dual-underlying ETFs, as well as a crypto gold product, all pending approval from the regulators.

Rakuten Securities: It adopts a similar in-house development strategy through its subsidiary Rakuten Investment Management, with product design centered on direct trading via a smart phone application.

Japan’s crypto regulation timeline: key confirmed milestones

April 2026: The Japanese Cabinet approves a bill to classify crypto-assets under the Financial Instruments and Exchange Act

Fiscal year 2027 (earliest): If passed by the current Diet session, crypto-assets would be regulated under the new regulatory framework starting from this fiscal year at the earliest

2027 (fastest): The most optimistic timeline for an ETF listing following the April confirmation by the JPX CEO (subject to legislation and tax policy being completed)

2028 target: Japan’s Financial Services Agency plans to formally include crypto-assets in a specific asset list under the Investment Trust Act

Other major institutions’ confirmed updates

Nomura Securities: Has announced that it is developing crypto-asset trust products in-house; its Swiss subsidiary, Laser Digital, reduced trading volume in February but reiterated its long-term commitment

Daiwa Securities: Has announced that it is developing crypto-asset trust products in-house

SMBC Group (including SMBC Nikko): Has set up an inter-group working team

Asset Management Company One (Mizuho Group): Has launched preliminary research

FAQ

What’s the difference between crypto-asset investment trusts and directly buying crypto?

Currently, buying digital assets in Japan usually requires opening a dedicated crypto exchange account or setting up an electronic wallet. Investment trusts, however, can be held through existing brokerage accounts already used for stocks and bonds, significantly lowering the operational barrier for retail investors to get started.

Does SBI’s target of 5 trillion yen have official backing?

Based on The Block’s prior reporting, SBI Global Asset Management has publicly confirmed its target to reach about 5 trillion yen (approximately $32 billion) in AUM within three years after product launch. It is the most aggressive publicly stated target among Japan’s wealth management companies.

Has a 2027 crypto ETF listing in Japan been confirmed?

It has not been confirmed yet; it is a conditional and optimistic timeline. JPX CEO Hiroyoshi Yamaji confirmed in April: if legal reforms and tax policy can be completed in the current Diet session, the Tokyo Stock Exchange could list it as early as 2027. If the current session cannot complete legislation, the timeline will be pushed back; the official target from Japan’s Financial Services Agency is 2028.