Japanese Institutional Investors Planning to Enter the Cryptocurrency Market, Survey Reveals
A recent survey conducted by Nomura and its digital asset subsidiary Laser Digital has shown that a majority of Japanese institutional investors are looking to invest in cryptocurrencies within the next three years.
The survey found that 54% of the participants expressed their intention to invest in digital assets within the next three years. Furthermore, 25% of the companies surveyed have a positive impression of cryptocurrencies. The survey also highlighted that 62% of respondents see crypto as an opportunity to diversify their investment portfolios, alongside traditional assets such as cash, stocks, bonds, and commodities.
This suggests that digital assets are gaining recognition as a legitimate investment class. The survey also revealed that investors prefer to allocate 2% to 5% of their assets under management (AUM) in digital assets, with almost 80% of respondents planning to invest within the next year.
The development of new investment products, such as exchange-traded funds (ETFs), investment trusts, and staking and lending offerings, has been identified as a key driver for future investments. Additionally, nearly half of the participants expressed interest in investing in Web3 projects directly or through venture capital funds.
Despite the growing interest, there are still some barriers preventing some managers from entering the digital asset space. These barriers include counterparty risk, high volatility, and concerns about regulatory requirements.
Overall, the survey conducted by Nomura indicates a significant shift in Japanese institutional investors’ attitudes towards cryptocurrencies. It suggests a growing interest and substantial investment potential in the sector in the near future.
Please note that this article is not investment advice.
