Japan’s biggest investment managers are signaling a concerted shift toward Bitcoin and other digital assets as policymakers move forward with plans to revise Japan’s financial rules.
A leading Japanese business group has confirmed that it is preparing a product framework for cryptocurrency-related investment vehicles, in hopes of expanding the sector for the first time since current regulations prohibit digital assets from being included in investment trusts.
Large executives prepare for trusts linked to cryptocurrencies
According to a report in the Nikkei Shimbun, six companies, Daiwa Asset Management, Asset Management One, Amova Asset Management, Mitsubishi UFJ Asset Management, SBI Global Asset Management, and Nomura Asset Management, announced that they are evaluating and developing strategies for virtual currency investment trusts. These discussions follow renewed consideration within policy regarding whether such products should be allowed for the first time under Japan’s financial system.
Under current rules, crypto assets cannot be incorporated into mutual funds. The framework is currently being considered by policymakers as part of a broader regulatory review. The Financial Services Authority (FSA) has the power to reclassify virtual currencies as financial instruments and exchanges under the Financial Instruments and Exchange Act, rather than the Payment Services Act.
The reform applies taxes to digital assets such as financial assets, and is in line with ongoing plans to add a flat 20% tax to crypto gains, similar to gains on other stocks and bonds.
According to the Nikkei Shimbun, the Financial Services Agency plans to pass a bill to change the legal framework at the 2026 regular session of the Diet. If this reform bill is passed, it will pave the way for the introduction of virtual currency investment trusts, and the Investment Trust Act will also need to be amended to make them available to individual investors and, in the future, institutional investors.
Japanese asset manager outlines product plan
SBI Global Asset Management has announced plans to launch an exchange-traded fund based on Bitcoin and Ether and develop a diversified portfolio of crypto-focused investment trusts. The company has set a goal of managing approximately $32 billion in total assets, or 5 trillion yen, within three years of its establishment. Nomura Asset Management said it is developing an internal team focused on developing crypto products and is ready to start as soon as new regulations come into effect.
One company that has expressed interest is Mitsubishi UFJ Asset Management, a subsidiary of Mitsubishi UFJ Financial Group. Mitsubishi UFJ Financial Group’s total asset value is estimated at 2.7 trillion yen.
The company has been involved in blockchain-related projects, including the development of stablecoin interoperability systems. Daiwa Asset Management, which reported having approximately 213 billion assets under management as of March 2024, has also expressed interest in offering cryptocurrency-based trust products.
Asset Management One and Amova Asset Management are said to be investigating potential new market involvement. The companies said their services will be targeted at both the retail sector and institutional investors as soon as such services become legal.
The country’s financial regulator said it is also considering launching an investment trust that includes cryptocurrencies, noting growing interest from investment management companies. According to the Nihon Keizai Shimbun, this could increase participation in digital assets in the domestic market by making regulated products available to mainstream investors.
