Okayama pension fund plans 1% crypto allocation in fiscal 2026

The National Business Enterprise Pension Fund in Japan plans to allocate about 1% of its assets to cryptocurrencies starting in fiscal 2026, extending digital-asset exposure to a fund covering about 1,200 small- and mid-sized companies and more than 20,000 participants. The fund manages more than 21.3 billion yen and intends to invest through a passive vehicle tracking a basket of cryptocurrencies, with the portfolio handled by a large hedge fund rather than managed internally. The move is part of a broader currency-diversification shift: after holding more than 80% of its currency portfolio in yen, 15% in dollars and 5% in other currencies in fiscal 2025, the fund plans to reduce yen exposure to 70% in fiscal 2026 and allocate the remaining 10% to developed-market currencies, with 5% split across emerging-market currencies, gold and crypto. Chief investment officer Kiguchi Aitomo said the fund views Bitcoin less as a return-seeking bet than as a currency and hedging tool, citing its near-zero correlation with the dollar and the weakening of the U.S. dollar. He said the fund had studied Bitcoin for more than six years before deciding to invest and is also considering funds that use arbitrage strategies across multiple cryptocurrencies. The development comes as Japan weighs broader crypto-market reforms, including proposed tax and legal changes and a pathway that could eventually support spot Bitcoin ETFs and Bitcoin futures.