Japanese Institutional Investors Show Growing Interest in Crypto, Survey Reveals

A recent survey by Nomura and Laser Digital indicates a significant change in Japan's institutional investors' attitudes towards crypto, with nearly 80% planning to invest in digital assets over the next three years. This shift is driven by the perception of crypto as a tool for diversification, with many respondents citing its low correlation with traditional assets as a key reason for investment. While allocations are expected to be modest, ranging between 2% and 5% of portfolios, the survey reflects improving sentiment, with 31% of respondents expressing a positive outlook on crypto, up from 25% in 2024. The survey's findings coincide with Japan's ongoing efforts to refine its regulatory framework for digital assets, which has helped foster a domestic crypto ecosystem. Major companies, including SBI Holdings and bitFlyer, are anchoring this ecosystem, and traditional financial institutions are also entering the industry. The survey, which gathered responses from 518 investment professionals, suggests that interest in crypto is expanding beyond simple price exposure, with over 60% of respondents expressing interest in income-generating strategies and tokenized assets. However, challenges such as valuation frameworks, counterparty risks, and regulatory uncertainty remain, although concerns are shifting from whether to invest to how to do it.