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

Japan's institutional investors are increasingly embracing crypto, with nearly 80% planning to invest in the next three years, according to a survey by Nomura and Laser Digital. This shift reflects a growing perception of crypto as a valuable tool for diversification, with many respondents citing low correlation with traditional assets as a key reason for investing. While allocations are expected to be modest, with over half of respondents targeting between 2% and 5% of their portfolios, the survey indicates a significant improvement in sentiment, with 31% of respondents describing their outlook on crypto as positive, up from 25% in 2024. The findings come as Japan continues to refine its regulatory framework for digital assets, providing clarity that has helped foster a thriving domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer are anchoring this ecosystem, while traditional financial institutions are also entering the industry. The survey highlights a growing interest in income-generating strategies, such as staking and lending, as well as derivatives and tokenized assets, suggesting that investors are beginning to view crypto as a broader financial toolkit. However, challenges remain, including the lack of established valuation frameworks, counterparty risks, and regulatory uncertainty, which continue to weigh on adoption. Despite these concerns, the survey indicates that institutions are now focused on how to invest in crypto, rather than whether to invest at all.