A new survey from Nomura reveals a dramatic shift in Japan's investment landscape: nearly 80% of institutional investors plan to hold cryptocurrencies within the next three years. By 2029, these professionals anticipate allocating up to 5% of their portfolios to digital assets.

The growing acceptance stems from crypto's perceived low correlation with traditional assets, positioning it as a valuable diversification tool. Sentiment is also improving, with positive outlooks increasing and negative sentiment declining.

This trend is supported by Japan's refined regulatory framework for digital assets, fostering a domestic ecosystem with established players like SBI Holdings and bitFlyer. Traditional institutions are also exploring tokenized deposits and stablecoins.

Beyond simple price exposure, over 60% of respondents are interested in income-generating strategies like staking and lending, indicating a move towards treating crypto as a broader financial toolkit.

Despite lingering concerns over valuation, counterparty risks, and volatility, the focus for institutions has shifted from 'if' to 'how' they will invest in digital assets.