Key takeaways
Japan, once a crypto pioneer, now lags behind. Meanwhile, countries like Norway and Kazakhstan are embracing institutional crypto exposure.
Japan helped usher in the crypto era, but it’s quickly falling behind.
Despite its early start, the country now holds just 1-2% of global Bitcoin [BTC] reserves, with daily trading volumes under 1,000 BTC.
Meanwhile, heavyweight institutions elsewhere are charging ahead. Norway’s boosted its Bitcoin exposure by 83% in Q2 alone, now holding over 11,600 BTC.
There’s a widening institutional gap, one that Japan may struggle to close under its current rules.
Japan is on the sidelines
Japan may have led early crypto adoption, but its footprint in today’s Bitcoin economy is surprisingly small.
Local exchanges hold just 1-2% of global Bitcoin reserves, and daily spot trading volume hovers under 1,000 BTC; dwarfed by giants like Binance and Coinbase.
Source: CryptoQuant
The reasons are structural: Japan’s market is shaped by some of the world’s tightest regulations, a retail-first user base, and a preference for derivatives over spot trading.
As a result, Japan plays a limited role in global price discovery. While its framework prioritizes investor safety, the country’s Bitcoin influence remains narrow.
Norway’s BTC exposure increases
While Japan sticks to caution, Norway is ramping up its crypto bets… indirectly.
The world’s largest sovereign wealth fund, worth $1.7 trillion, has increased its Bitcoin exposure by 192% over the past year.
Though the fund doesn’t hold BTC outright, it owns equity in crypto-forward firms like Coinbase, Metaplanet, and Strategy, giving it exposure to over 7,100 BTC.
Source: X
Its investment in Strategy alone surged 133% year-over-year, while its Coinbase stake nearly doubled.
A global shift
In July, Kazakhstan’s sovereign wealth fund revealed plans to convert a portion of its assets into crypto.
According to National Bank chief Timur Suleimenov, the move is supposed to boost long-term returns and reduce reliance on traditional reserves like gold and foreign currency.
As more state-backed funds begin exploring digital assets, crypto is no longer fringe.
