Japanese pension funds plan to allocate to cryptocurrencies, driven by demand for currency diversification

According to the Nikkei, the National Commercial Enterprises Pension Fund (Okayama City), which comprises approximately 1,200 small and medium-sized enterprises, plans to begin cryptocurrency investments within fiscal year 2026, allocating roughly 1% of its managed assets to cryptocurrencies via a passive fund operated by a major hedge fund. The fund’s Executive Director stated that the U.S. dollar’s status as the world’s primary reserve currency may be weakening, and since Bitcoin exhibits extremely low correlation with the U.S. Dollar Index, it possesses inherent attributes for hedging against currency depreciation.