Japan was once a leader in cryptocurrency but is now gradually falling behind countries like Norway and Kazakhstan in the race for institutional cryptocurrency access.
Although it started early, Japan currently only holds a very small portion of global Bitcoin reserves, while countries like Norway and Kazakhstan are ramping up institutional investment in this area.
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Japan currently only accounts for 1-2% of global Bitcoin reserves with low trading volumes, lagging behind other countries.
Large sovereign wealth funds like Norway's have significantly increased their exposure to Bitcoin through investments in cryptocurrency technology companies.
The trend of global national funds like Kazakhstan shifting to digital assets shows a strong change in reserve investment strategies.
Why is Japan lagging in the global institutional cryptocurrency market?
Japan was once a pioneer in the cryptocurrency sector, but now only holds 1–2% of global Bitcoin reserves, with daily spot trading volumes below 1,000 BTC.
Japan's market share in the global Bitcoin market is currently very small, despite its previous pioneering position.
Source: CryptoQuant, 2025
Domestic exchanges in Japan only account for a small portion compared to major names like Binance and Coinbase. According to CryptoQuant, Japan only holds 1-2% of global Bitcoin reserves, with daily spot trading volumes of less than 1,000 BTC – far too small compared to major cryptocurrency financial centers.
The main reason is due to the strict legal environment. Japan focuses on protecting individual investors while also leaning more towards derivative trading rather than spot trading. This restriction has narrowed Japan's role in global pricing and lacks the attraction of institutional capital.
What restrictions make it difficult for Japan to catch up?
The strict monitoring and control system, which is user-friendly, has created significant barriers to institutional participation in Japan.
Although Japan's legal framework prioritizes investor safety, it also significantly reduces the country's influence on the global Bitcoin market.
CryptoQuant report, 2025
Unlike other large markets, Japan does not prioritize service structures for large financial institutions, which can lead to missed opportunities for large-scale investments. Domestic companies mainly serve individual trading needs, hence they do not play a prominent role in the global pricing ecosystem. A policy focused on risk control may help mitigate losses, but it makes Japan somewhat passive on the global cryptocurrency map.
In this context, the rise of national funds from Norway and Kazakhstan is an example of a flexible approach that dares to innovate investment strategies into digital assets.
How has Norway expanded institutional access to Bitcoin?
Norway's sovereign wealth fund, valued at $1.7 trillion, has increased its exposure to Bitcoin by 192% over the past year, becoming one of the most active national funds in cryptocurrency.
The increased investment in leading cryptocurrency companies has brought Norway's national fund exposure to over 7,100 BTC in just the past year.
Norway's sovereign wealth fund report, 2025
Unlike Japan, Norway approaches Bitcoin indirectly through shares of key global cryptocurrency companies such as Coinbase, Metaplanet, and Strategy. As a result, the fund has exposure to over 7,100 BTC. The investment in Strategy alone increased by 133% compared to the previous year, while the stake in Coinbase nearly doubled during the same period.
This growth indicates that Norway is very proactive in adjusting its investment strategy to seize opportunities from cryptocurrency-related financial products, rather than being limited to traditional trading systems.
What drives Kazakhstan to convert reserves into digital assets?
In July 2025, Kazakhstan's sovereign wealth fund announced plans to convert part of its reserves into cryptocurrency to increase long-term profits and reduce dependence on traditional reserve sources.
We aim to optimize the value of national reserves by diversifying assets into the digital field.
Timur Suleimenov, Chairman of the National Bank of Kazakhstan, Kursiv Media, 2025
According to the chairman of the National Bank of Kazakhstan, investing in digital assets helps diversify reserves and reduce volatility risks from gold and foreign currencies. This opens up a new trend as more and more national funds see cryptocurrency as an essential part of their medium to long-term investment structure.
This change in strategy not only helps Kazakhstan increase profitability but also minimizes risks from global economic fluctuations. This is also why other large investment funds around the world have begun to pay more attention to diversifying assets into the digital field.
Comparison: How do Japan, Norway, and Kazakhstan approach institutional cryptocurrency?
Countries like Norway and Kazakhstan have a more flexible approach to cryptocurrency at the organizational scale compared to Japan's cautious policy.
Criteria Japan Norway Kazakhstan Global BTC reserve market share 1-2% Indirect via 7,100 BTC Preparing for investment Organizational access channel Restricted, strict legal regulations Investment in shares of cryptocurrency companies Direct investment in digital assets Investment strategy Protecting individual investors Diversification through digital assets Optimizing reserves, reducing dependence on foreign currencies BTC trading volume/day Below 1,000 BTC No statistics Not published
Global trend shift: Cryptocurrency is no longer seen as a non-traditional asset.
The strong participation of national funds from Norway and Kazakhstan in the cryptocurrency sector affirms the global spillover effect, promoting cryptocurrency to become an important part of modern reserve portfolios.
Cryptocurrency is gradually becoming a key component in the reserve management strategy of many countries, rather than just a fringe asset.
National Bank of Kazakhstan report, 2025
As governments and large national funds actively diversify and invest in digital assets, the boundaries between traditional and digital assets are becoming increasingly blurred. This also creates pressure for cautious countries like Japan to reconsider their policies if they do not want to continue lagging behind.
Financial experts predict that the next phase of the market will witness a widespread shift of national reserves into digital assets across Europe, Asia, and the Middle East.
Frequently asked questions about institutional access to Bitcoin and countries
What percentage of global Bitcoin reserves does Japan currently hold?
Japan only holds about 1-2% of global Bitcoin reserves, significantly lower than in the early stages of development.
Why is Japan lagging behind Norway and Kazakhstan in institutional cryptocurrency investment?
The main reason is due to the strict legal framework and the focus on protecting individual investors, which limits the participation of large institutions.
How does Norway's sovereign wealth fund invest in Bitcoin?
Norway primarily gains exposure to Bitcoin through investments in shares of cryptocurrency technology companies like Coinbase, Metaplanet, and Strategy.
What strategy does Kazakhstan have with digital assets?
Kazakhstan is implementing investments of part of its national reserves into cryptocurrency to enhance long-term profits and reduce dependence on gold and foreign currencies.
What is the current daily Bitcoin trading volume in Japan?
The daily spot trading volume in Japan is low, always below 1,000 BTC.
What is the next trend for sovereign wealth funds around the world with cryptocurrency?
National funds are accelerating the diversification of assets into the digital field, making cryptocurrency an important reserve component.
What is the biggest challenge for Japan if it wants to catch up with leading countries?
The biggest challenge is to create a sufficiently flexible legal environment to attract institutional investment while ensuring investor safety.
Source: https://tintucbitcoin.com/na-uy-kazakhstan-day-tien-so-nhat-de-chung/
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