Japan Pension Fund Allocates 1% to Crypto via Passive Funds

The Japan National Business Corporate Pension Fund plans to allocate 1% of its managed assets to cryptocurrency-linked products by fiscal 2026. The move is aimed at diversifying currency risk as Japan advances new digital asset reforms.

The fund, which oversees around $192 million in assets and serves over 20,000 members, will invest through passive crypto funds instead of directly buying digital tokens. This approach allows for controlled exposure to the market without a direct bet on one token.

Aiyu Kiguchi, executive director of investment at the fund, pointed out concerns over the dollar's long-term role and noted Bitcoin's low correlation with the dollar index as reasons for considering crypto exposure.