Japanese Institutional Investors Show Growing Interest in Crypto, With 80% Planning to Invest Within Three Years

A survey conducted by Nomura and Laser Digital indicates a notable change in the approach of Japanese institutional investors towards crypto, shifting from cautious interest to active planning. Almost 80% of respondents plan to add cryptocurrency to their portfolios over the next three years, driven by the perceived benefits of diversification and low correlation with traditional assets. While allocations are expected to be moderate, ranging between 2% and 5% of their portfolios, the survey reflects an improvement in sentiment, with 31% of respondents holding a positive outlook on crypto, up from 25% in 2024. Japan's established regulatory framework for digital assets has contributed to the growth of a domestic crypto ecosystem, with major companies such as SBI Holdings and bitFlyer playing key roles. The survey also highlights increasing interest in income-generating strategies, derivatives, and tokenized assets, as well as stablecoins, with 63% of respondents identifying potential use cases. Despite remaining challenges, including valuation frameworks, counterparty risks, and regulatory uncertainty, the focus has shifted from whether to invest in crypto to how to do so, with 518 investment professionals participating in the survey.