A Japanese pension fund serving 1,200 companies, the National Business Enterprise Pension Fund, plans to allocate 1% of its 21.3 billion yen in assets to crypto in FY2026. The move is a currency diversification strategy to hedge against a weakening U.S. dollar. This comes as Japan moves to integrate digital assets, with plans for Bitcoin futures in 2028 and legislation to lower crypto taxes from a maximum of 55% to a flat 20%.
Pension fund crypto allocation
- ▪The National Business Enterprise Pension Fund manages about 21.3 billion yen (approximately $130 million) in assets
- ▪The fund's CIO, Kiguchi Aitomo, stated the fund studied Bitcoin for over six years before deciding to make the allocation
- ▪The fund serves approximately 1,200 small and medium-sized businesses and has over 20,000 participants
- ▪The National Business Enterprise Pension Fund in Japan plans to allocate about 1% of its assets to cryptocurrency starting in fiscal year 2026
- ▪The crypto allocation will be managed by a large hedge fund through a passive fund that tracks a basket of cryptocurrencies
Currency diversification strategy
- ▪For FY2026, the fund plans to reduce its yen allocation from 80% to 70%, reallocating the difference to other assets including crypto
- ▪The allocation is part of a currency diversification strategy, with the fund treating Bitcoin as a hedging tool
- ▪CIO Kiguchi Aitomo cited the weakening of the U.S. dollar and Bitcoin's near-zero correlation with it as reasons for the move
Bitcoin futures trading
- ▪The launch of Bitcoin futures is timed to coincide with the expected domestic approval of spot Bitcoin ETFs
- ▪The Osaka Exchange, a subsidiary of Japan Exchange Group, plans to launch Bitcoin futures in 2028
Spot Bitcoin ETF approval
- ▪The approval of spot Bitcoin ETFs in Japan is dependent on the Financial Services Agency revising its investment trust rules
- ▪Japan's Financial Services Agency is targeting 2028 to formally classify crypto as a "specified asset" that funds are permitted to hold
Crypto tax reform legislation
- ▪If the bill passes the upper house, it would change the tax on crypto gains from a maximum of 55% to a flat 20% self-assessment rate
- ▪On June 11, Japan's House of Representatives passed a bill to reclassify crypto under the Financial Instruments and Exchange Act
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