Japanese Institutional Investors Planning to Enter Cryptocurrency Sector, Survey Finds
A recent survey conducted by Nomura and its digital asset subsidiary Laser Digital has revealed that a majority of Japanese institutional investors are planning to invest in cryptocurrencies within the next three years.
The survey found that 54% of participants expressed their intention to invest in digital assets in the next three years. Additionally, 25% of companies stated that they have a positive impression of cryptocurrencies. The survey also highlighted that 62% of respondents see crypto as a way to diversify their investment portfolio alongside traditional assets such as cash, stocks, bonds, and commodities.
This survey reflects the growing acceptance of digital assets as a legitimate investment class. Investors are looking to allocate 2% to 5% of their assets under management (AUM) in digital assets, with nearly 80% of respondents planning to invest within a year.
The development of new investment products, including 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.
However, there are still some barriers that prevent managers from entering the digital asset space. These barriers include counterparty risk, high volatility, and concerns about regulatory requirements.
Overall, Nomura’s survey highlights a significant shift in Japanese institutional investors’ attitudes towards cryptocurrencies and indicates a growing interest and potential for significant investments in the sector in the near future.