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

According to a survey conducted by Nomura and its digital asset subsidiary, Laser Digital, Japan's institutional investors are transitioning from cautious interest to proactive investment planning, with nearly 80% planning to add cryptocurrencies to their portfolios over the next three years. This shift is driven by a 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. However, allocations are expected to be limited, with over half of respondents targeting allocations between 2% and 5% of their portfolios. The survey also reveals improving sentiment towards crypto, with 31% of respondents expressing a positive outlook, up from 25% in 2024, while negative sentiment has declined to 18%. These findings come as Japan continues to refine its regulatory framework for digital assets, providing clarity that has fostered a domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer are anchoring this ecosystem, and traditional financial institutions are also entering the industry. The survey suggests that interest in crypto is expanding beyond simple price speculation, with over 60% of respondents expressing interest in income-generating strategies and derivatives. Stablecoins are also a focus area, 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 shifting their focus from whether to invest in crypto to how to do so.