Japanese Institutional Investors Show Growing Interest in Crypto Investments

A survey conducted by Nomura and Laser Digital indicates a significant shift in attitudes towards cryptocurrency investment in Japan, with nearly 80% of institutional investors planning to incorporate crypto into their portfolios over the next three years. This change in sentiment reflects a growing perception 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, ranging from 2% to 5% of their portfolios, the shift towards a more positive outlook is evident. The survey also reveals that 31% of respondents now have a positive view of crypto, up from 25% in 2024, while negative sentiment has decreased to 18%. Japan's established regulatory framework for digital assets has contributed to this growing interest, with major companies such as SBI Holdings and bitFlyer playing a significant role in the domestic crypto ecosystem. Traditional financial institutions are also entering the industry, with firms like Nomura and Mitsubishi UFJ Financial Group exploring various aspects of digital assets. The survey found that over 60% of respondents are interested in income-generating strategies, such as staking and lending, and derivatives, indicating a shift towards treating crypto as a broader financial tool. Additionally, 63% of respondents identified potential use cases for stablecoins, including treasury management and cross-border payments. While challenges such as valuation frameworks, counterparty risks, and regulatory uncertainty remain, the focus has shifted from whether to invest in crypto to how to do so. The survey, which gathered responses from 518 investment professionals, was conducted in December and January.