Majority of Japan's Institutional Investors Set to Invest in Crypto Within Three Years

A survey conducted by Nomura and Laser Digital indicates a significant shift in attitudes towards crypto investment in Japan, with almost 80% of institutional investors planning to invest in crypto over the next three years. This shift is driven by the growing perception of crypto as a tool for diversification, with many respondents citing its low correlation with traditional assets as a key reason for investment. While allocations are expected to be modest, with over half of respondents targeting a 2-5% portfolio allocation, the survey suggests improving sentiment towards crypto, with 31% of respondents expressing a positive outlook. The findings come as Japan continues to refine its regulatory framework for digital assets, providing clarity that has helped foster a domestic crypto ecosystem. The survey also found that interest in crypto is expanding beyond simple price exposure, with over 60% of respondents expressing interest in income-generating strategies and stablecoins. However, barriers to adoption remain, including the lack of established valuation frameworks and regulatory uncertainty. Despite these challenges, the survey suggests that institutional investors are now focused on how to invest in crypto, rather than whether to invest at all.