Japan’s Financial Giants Prep for Bitcoin and Ethereum ETFs

Japan's SBI and Rakuten are developing crypto investment products as new tax reforms slash rates to 20%, putting Bitcoin on par with traditional assets.

This strategic move comes as Japan undergoes significant regulatory and tax reforms, systematically dismantling the primary obstacles to institutional participation in the crypto market. Local media and market insiders report that major brokerage firms are preparing for a future where Bitcoin and Ethereum are treated almost identically to traditional financial instruments.

SBI Securities is planning to offer products developed by its own subsidiary, SBI Global Asset Management, with a primary focus on highly liquid assets like BTC and ETH. The firm aims to establish a complete internal ecosystem, spanning everything from asset management to direct sales for retail investors.

Rakuten Securities is adopting a similar strategy through its partnership with Rakuten Investment Management. Their main objective is to integrate crypto investment products directly into Rakuten’s popular mobile applications, a move that could potentially open the market to millions of retail investors across Japan.

Japan Prepares for a New Era of Crypto Investment

According to a Nikkei survey, 11 of the 18 largest brokerage firms in the country are already actively analyzing or developing similar products. Nomura Securities is among those exploring the space, signaling that crypto assets have become a strategic priority for the entire Japanese financial sector.

The driving force behind this shift is a regulatory push from the Japanese Financial Services Agency (FSA). The regulator is currently working on amendments to the Investment Trust Act, which will officially classify leading cryptocurrencies as “eligible assets” for ETFs and investment trusts.

While the reform is expected to be fully finalized by 2028, the momentum is already shifting institutional behavior. Financial companies are eager to position themselves before the market fully opens to regulated crypto investment products.

Tax Reform Changes the Game

The tax element is proving to be even more critical for market dynamics. In April, the Japanese government approved a reform that will reduce the maximum tax on cryptocurrency profits from 55% to a flat 20% rate—the same level applied to stocks and bonds.

This change has the potential to radically transform the domestic market. Until now, high taxation was a primary reason institutional investors and many retail traders avoided aggressive exposure to digital assets.

The combination of regulatory clarity, ETF structures, and lower taxes is positioning Japan as one of Asia’s most important future hubs for institutional crypto investment.

Market analysts are already drawing parallels to the early stages of the Bitcoin ETF boom in the United States. However, the distinction in Japan is that local brokers appear intent on controlling the entire process internally—from product development to providing direct access through their own digital platforms.