Japanese Institutional Investors Show Growing Interest in Crypto Investments

In Japan, the perception of crypto investments is transitioning from cautious observation to active integration into portfolios, as revealed by a survey conducted by Nomura and its digital asset subsidiary, Laser Digital. Almost 80% of the country's institutional investors plan to incorporate crypto into their portfolios over the next three years, driven by the view of crypto as a tool for diversification. The primary reason cited for this shift is the low correlation between crypto and traditional asset classes, with over half of respondents aiming to allocate between 2% and 5% of their portfolios to digital assets. The survey also notes an improvement in sentiment towards crypto, with 31% of respondents expressing a positive outlook, up from 25% in 2024, and a decline in negative sentiment to 18%. These findings emerge as Japan continues to refine its regulatory framework for digital assets, which has helped foster a domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer are key players in this ecosystem, and traditional financial institutions are also entering the industry. The survey, which gathered responses from 518 investment professionals, including institutional investors and family offices, 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 another area of focus, with 63% of respondents identifying potential use cases. Despite remaining challenges such as regulatory uncertainty and volatility, the survey indicates a shift in focus from whether to invest in crypto to how to do so.