Majority of Japan's Institutional Investors Intend to Invest in Crypto Within Three Years

A recent survey conducted by Nomura and its digital asset arm, Laser Digital, reveals a significant shift in attitudes towards crypto investment among Japan's institutional investors, with nearly 80% planning to add crypto 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 low correlation with traditional assets as a key reason for investing. While allocations are expected to remain relatively conservative, with over half of respondents planning to allocate between 2% and 5% of their portfolios to crypto, the survey suggests a growing sense of optimism, with 31% of respondents describing their outlook on crypto as positive. The findings are consistent with Japan's efforts to refine its regulatory framework for digital assets, which has helped to foster a domestic crypto ecosystem. Major companies, such as SBI Holdings and bitFlyer, are already operating in the space, and traditional financial institutions are also entering the market. The survey also 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 tool. However, challenges such as regulatory uncertainty, counterparty risks, and high volatility continue to weigh on adoption, with investors citing the need for established valuation frameworks and trusted counterparties.