Japan's Asset Managers Race to Launch Crypto Investment Trusts

Japan's top asset managers are preparing crypto investment trusts and ETFs, anticipating regulatory reforms that would allow digital assets in investment trusts and lower crypto tax rates.

Japan's largest asset management firms are preparing to launch the country's first cryptocurrency investment trusts, anticipating significant regulatory reforms. Companies such as Daiwa Asset Management, Asset Management One, Amova Asset Management, Mitsubishi UFJ Asset Management, and Nomura Asset Management are developing crypto-based investment products, while SBI Global Asset Management plans to introduce ETFs linked to bitcoin and ether. These initiatives follow discussions by lawmakers and the Financial Services Agency (FSA) about reclassifying cryptocurrencies under the Financial Instruments and Exchange Act, which would allow digital assets to be included in investment trusts and lower the tax rate on crypto gains to a flat 20%. The FSA aims to finalize these legal changes during the 2026 parliamentary session, enabling amendments to the Investment Trust Act and opening the market to both retail and institutional investors. Asset managers are forming internal teams and preparing systems to quickly roll out crypto products once regulations are in place, signaling a major shift in Japan's financial landscape.