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

Core Insights - Japan's largest asset management firms are preparing to launch the country's first cryptocurrency investment trusts as regulatory changes are anticipated [1][9] - The Financial Services Agency (FSA) plans to reclassify cryptocurrencies under the Financial Instruments and Exchange Act by 2026, allowing their inclusion in investment trusts [4][9] - A tax overhaul is being considered, which would lower the financial income tax on crypto gains from a maximum of 55% to 20% [5] Industry Developments - A survey indicates that major players like Daiwa Asset Management, Asset Management One, Amova, and Mitsubishi UFJ are exploring crypto trust products [3] - SBI Global Asset Management aims to launch Bitcoin and Ethereum ETFs and multi-asset crypto trusts, targeting ¥5 trillion ($32 billion) in assets under management within three years [6][9] - Other firms, including Nomura Asset Management and Daiwa Asset Management, are building internal capacities and strategies in anticipation of regulatory changes [8] Regulatory Changes - Current regulations prevent cryptocurrencies from being included in investment trusts due to restrictions in the Act on Investment Trusts and Investment Corporations [4] - The FSA's reclassification of crypto is expected to provide the same investor protections as stocks and bonds, facilitating the establishment of crypto investment trusts [4][5] - The anticipated legislative changes are seen as a way to activate household capital and encourage investment [7]