Japanese Institutional Investors Show Growing Interest in Crypto Investments

A survey conducted by Nomura and Laser Digital reveals a significant shift in attitudes towards crypto investments among Japanese institutional investors, with nearly 80% planning to add digital assets to their portfolios over the next three years. This change in sentiment is largely driven by the perceived benefits of diversification, as many respondents cited the low correlation between crypto and traditional assets as a key factor. However, allocations are expected to remain modest, with over half of respondents targeting allocations between 2% and 5% of their portfolios. The survey also notes an improvement in sentiment, with 31% of respondents expressing a positive outlook on crypto, compared to 25% in 2024, while negative sentiment decreased to 18%. These findings come as Japan continues to refine its regulatory framework for digital assets, providing clarity that has helped foster a domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer are already established in the industry, and traditional financial institutions are also entering the market. The survey suggests that interest in crypto is expanding beyond simple price exposure, with over 60% of respondents expressing interest in income-generating strategies and derivatives. Stablecoins are also gaining attention, with 63% of respondents identifying potential use cases such as treasury management and cross-border payments. While challenges such as valuation frameworks and regulatory uncertainty remain, the survey indicates that institutions are now focused on how to invest in crypto, rather than whether to do so.