Japan's Leading Asset Managers Set to Launch the Country's First Crypto Trusts

Japan's largest asset management firms are gearing up to introduce the country's inaugural cryptocurrency investment trusts. This follows the regulatory shift towards a significant overhaul of how digital assets are classified under financial law.

Key Takeaways

Major asset managers in Japan are preparing to create crypto investment trusts in anticipation of regulatory changes expected in 2026.
The Financial Services Agency (FSA) plans to classify cryptocurrencies under financial securities law, which will allow for investment trusts while reducing taxation.
SBI Global is at the forefront, aiming for ¥5 trillion in assets under management (AUM) through new ETFs and multi-asset trusts.

According to a recent Nikkei survey, six prominent firms—including Daiwa Asset Management, Asset Management One, Amova, and Mitsubishi UFJ—are investigating crypto trust products ahead of a forthcoming regulatory change from the FSA.

Japan’s Biggest Asset Managers Eye Launch of Nation’s First Crypto Trusts

Japan's 2026 Regulatory Changes for Crypto Investment Trusts

Currently, Japanese law prohibits cryptocurrencies from being included in investment trusts, primarily due to constraints within the Act on Investment Trusts and Investment Corporations.

The FSA is working to redefine cryptocurrencies under the Financial Instruments and Exchange Act by 2026, which would offer the digital asset class the same protections afforded to stocks and bonds.

Additionally, the FSA is contemplating a tax adjustment that would impose a 20% financial income tax on cryptocurrency gains, thereby replacing the existing rate that can soar up to 55%. If the legislation advances, the FSA is expected to promptly amend the Investment Trust Act, creating a pathway for cryptocurrency investment trusts in Japan.

In the US, BlackRock's Bitcoin ETF has already set a benchmark, reaching $90 billion in assets by September, while Japan counts approximately 13 million crypto accounts managed through local exchanges.

SBI Global Asset Management seeks to capitalize on this shift, with plans to launch Bitcoin and Ethereum ETFs alongside multi-asset crypto trusts. They aim to amass ¥5 trillion ($32 billion) in assets under management within three years of their launch. President Tomoya Asakura noted that crypto products could serve as vital channels "to move money from savings to investments,” aligning with Japan’s ongoing strategy to mobilize household capital.

Japanese Asset Managers Develop Crypto Teams Ahead of Regulatory Transition

In preparation for this anticipated regulatory transformation, other firms are swiftly enhancing their internal capabilities.

Nomura Asset Management has established a cross-department task force dedicated to formulating product strategies for the upcoming regulatory landscape, while Daiwa Asset Management is collaborating closely with the ETF specialist Global X Japan.

Moreover, Mitsubishi UFJ Asset Management and Amova Asset Management are assessing their fund offerings for both retail and institutional investors.

Nonetheless, several practical challenges persist. Asset managers must consider pricing benchmarks, ensure they can obtain cryptocurrencies quickly to align with investor demand, and establish comprehensive custody and security systems. The inherent volatility of digital assets remains a significant concern.

Daisuke Motori from Morningstar Japan cautioned, "Bitcoin’s price fluctuations are much larger than those seen in stocks, bonds, and gold," emphasizing the need for careful portfolio management.

Despite these challenges, the atmosphere is one of optimism. Japan is poised for a substantial reform of its crypto regulations, planning to categorize digital assets as financial products subject to insider trading laws while alleviating tax burdens on profits.

The FSA is currently drafting regulations that will encompass 105 cryptocurrencies available domestically, including leading assets like Bitcoin and Ethereum.