The Japanese National Business Enterprise Pension Fund will add cryptocurrencies to its portfolio for the first time. Starting in the 2026 fiscal year, about 1% of its capital will be allocated to digital assets.
For the fund, this is a small step in terms of volume, but a significant signal for the market. It works with about 1,200 small and medium-sized companies, unites more than 20,000 participants, and manages assets worth over 21.3 billion yen.
The fund itself will not buy cryptocurrencies directly. The money will be directed to a passive instrument that tracks a basket of digital assets. This part of the portfolio will be managed by an external hedge fund.
This is an unusual decision for the Japanese pension market. Large funds in the country have been studying bitcoin for several years, but almost none have made practical investments. Therefore, even 1% could become an important precedent.
Why the Fund Chose Cryptocurrencies
The main reason is not the expectation of a sharp rise in bitcoin. The fund views cryptocurrencies as part of currency diversification.
In the 2025 fiscal year, the portfolio was heavily tied to the yen, which accounted for more than 80%. The dollar made up about 15%, and the rest was distributed among other currencies.
In 2026, they want to reduce the yen’s share to 70%. The freed-up portion will be distributed among developed country currencies, emerging market assets, gold, and cryptocurrencies.
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Chief Investment Officer Kiguchi Aitomo explained this as a response to the weakening dollar and a desire to reduce dependence on individual currencies.
In this scheme, bitcoin is seen not as a bet on rapid growth, but as another asset in the currency basket. The fund believes it is important that BTC almost never mirrors the dollar’s movement. This may help the portfolio weather periods of currency instability more calmly.
The decision was not made quickly. According to Aitomo, the fund studied bitcoin for more than six years. During this time, the market has matured, and more large investors have joined.
In addition to passive investments, the fund is also considering crypto arbitrage. Such strategies profit from price differences between various digital assets.
Japan Changes Rules for Crypto Market
Against this backdrop, cryptocurrency regulation in Japan is gradually being restructured.
Osaka Exchange, which is part of the Japan Exchange Group, wants to launch bitcoin futures in 2028. The exchange expects that by then, spot bitcoin ETFs will already be available in the country.
But first, the regulator needs to change the rules for investment funds. Japan’s Financial Services Agency must officially recognize cryptocurrencies as assets that funds can hold in their portfolios.
There is also another reform. On June 11, the lower house of parliament supported a bill that reclassifies cryptocurrencies as financial instruments.
Currently, crypto in Japan is regulated as part of payment legislation. If the rules change, this will also affect taxes.
Today, profits from cryptocurrency transactions can be taxed at rates of up to 55%. After the reform, a separate rate of 20% may be introduced, as with stocks.
