Japan, a Sleeping Giant in Crypto?
Japan, which was once a pioneer in the world of cryptocurrencies, now seems to be falling behind as other countries like Norway and Kazakhstan embrace institutional exposure.
Despite having helped spark the crypto era, Japan currently holds only 1-2% of the global Bitcoin (BTC) reserves and has a daily trading volume below 1,000 BTC. This is a growing gap that the country may struggle to close under its current rules.
Japan is Left Out
Japan's influence on the Bitcoin economy is surprisingly small. Local exchanges barely account for 2% of global reserves, and their daily trading volume is overshadowed by giants like Binance and Coinbase.
This is due to structural reasons: the Japanese market is shaped by extremely strict regulations, a predominantly retail audience, and a preference for derivatives over spot trading. As a result, the country has a limited role in global price formation, and its influence on Bitcoin remains restricted.
Norway's Bet on BTC Increases
While Japan acts cautiously, Norway is increasing its bets on crypto — indirectly. The world's largest sovereign wealth fund, valued at $$ 1.7 trillion, increased its exposure to Bitcoin by 192% in the last year.
Although the fund does not own BTC directly, it has shares in companies like Coinbase, Metaplanet, and Strategy, giving it exposure to over 7,100 BTC. The investment in Strategy, for example, increased by 133% in a year.
A Global Shift Underway
Norway is not alone. In July, Kazakhstan's sovereign wealth fund revealed plans to convert part of its assets into cryptocurrencies. According to the head of the National Bank, Timur Suleimenov, this move aims to boost long-term returns and reduce dependence on traditional reserves.
