Japan’s largest asset managers are preparing to launch the country’s first cryptocurrency trusts, opening a new pathway for institutional access to digital assets. The push comes as the Financial Services Agency (FSA) moves to reclassify cryptocurrencies as financial products under the Financial Instruments and Exchange Act (FIEA), a reform expected around 2026 that would finally allow trusts and spot ETFs. In total, six major firms controlling roughly $2.5 trillion in assets plan to roll out crypto-based vehicles once the rules change.

Japan’s Top Asset Managers Position for Crypto Demand

Leading the initiative are six heavyweight institutions: Mitsubishi UFJ Asset Management, Nomura Asset Management, Daiwa Asset Management, Amova (formerly Nikko Asset Management), Asset Management One, and SBI Global Asset Management. Mitsubishi UFJ draws on the broader group’s $2.7 trillion in assets, while Nomura oversees ¥153 trillion (about $1 trillion) and commands 15% of Japan’s investment market. Daiwa manages $213 billion, and Amova holds $240.1 billion following its rebrand. SBI Global Asset Management stands out with ambitious plans to gather ¥5 trillion ($32 billion) in crypto assets and launch products ranging from Bitcoin and Ethereum ETFs to multi-asset trusts and even a Bitcoin-XRP dual ETF. Asset Management One is also preparing regulated vehicles to give investors familiar, compliant pathways into crypto.

The FSA’s proposal to classify cryptocurrencies as financial products under FIEA would legally enable crypto trusts and ETFs for the first time. The package also includes mandatory custody-provider registration by 2026, discussions on allowing banks to hold and operate crypto, and recognition of new instruments such as the JPYC stablecoin.

A major shift in taxation is also on the table: a move from progressive rates of up to 55% on crypto gains to a fixed 20% tax with loss carry-forward. This would eliminate a long-standing barrier to institutional participation and place crypto taxation in line with equities.

However, despite the optimism, risks remain. Crypto assets still carry extreme volatility, exposure to fraud, manipulation, and operational hurdles in custody and security. The effectiveness of the reforms will depend heavily on the speed and precision with which regulators adapt to fast-moving technology.

Even so, the combination of surging institutional demand and deep regulatory reform could position Japan as a major digital-asset hub in Asia—though the outcome ultimately depends on how quickly and effectively the proposed framework is implemented.