Key facts
- Japan's National Business Corporate Pension Fund will invest in Bitcoin and cryptocurrencies starting in fiscal 2026.
- The fund intends to allocate approximately 1% of its capital to crypto investments.
- Investments will be made through hedge fund-managed vehicles rather than direct token purchases.
- The move is driven by a desire to diversify risk and reduce reliance on the U.S. dollar.
- Japan is advancing reforms to integrate digital assets, including potential tax reductions and spot Bitcoin ETF approvals.
Japan's National Business Corporate Pension Fund is poised to begin investing in Bitcoin and other cryptocurrencies in fiscal year 2026, marking a significant step in the country's integration of digital assets into its financial system. The fund, which serves over 1,200 small and medium-sized businesses and more than 20,000 members, plans to allocate approximately 1% of its capital to these new investments.
The fund's strategy involves investing in a variety of investment vehicles managed by large hedge funds, rather than purchasing cryptocurrencies directly. This decision is part of a broader asset allocation overhaul aimed at diversifying risk, with reduced exposure to the yen and increased allocations to foreign currencies and other assets like gold. Executive director Aiyu Kiguchi cited concerns over the U.S. dollar's dominance and Bitcoin's low correlation with the dollar index as key factors.
Kiguchi also noted that the fund has been researching digital assets for six years, with the growing institutional investor base contributing to the perception of market maturity. The pension fund is also exploring crypto-specific strategies, such as arbitrage funds.
This development coincides with significant regulatory progress in Japan. The House recently passed reforms that could classify cryptocurrencies similarly to stocks, potentially lowering the tax on crypto gains from 55% to 20%. Regulators are also considering allowing investment trusts to acquire digital assets, a move seen as a precursor to approving spot Bitcoin ETFs. The Osaka Exchange has indicated plans to launch Bitcoin futures trading, contingent on regulatory approval of spot ETFs, and major brokerages like SBI Holdings and Rakuten Securities are preparing to offer crypto-linked products.