Survey Reveals 80% of Japan's Institutional Investors Plan to Invest in Crypto by 2029

In Japan, the perception of crypto investments is transitioning from cautious observation to active planning, as evidenced by a Nomura survey, which found that nearly 80% of institutional investors plan to incorporate crypto into their portfolios over the next three years. This shift is driven by the growing recognition of crypto as a tool for diversification, with many respondents citing its low correlation with traditional assets as a key factor. Although allocations are expected to be modest, with over half of respondents targeting between 2% and 5% of their portfolios, the overall sentiment towards crypto is improving, with 31% of respondents expressing a positive outlook, up from 25% in 2024, and negative sentiment declining to 18%. These findings come as Japan continues to refine its regulatory framework for digital assets, providing clarity that has fostered 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 also revealed 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 another area of focus, with 63% of respondents identifying potential use cases. Despite remaining challenges, including valuation frameworks and regulatory uncertainty, institutions are now focused on how to invest in crypto, rather than whether to do so.