Japanese Institutional Investors Shift Focus towards Cryptocurrency

A survey conducted by Nomura and its digital asset subsidiary Laser Digital revealed that a significant number of Japanese institutional investors are planning to venture into the world of cryptocurrencies over the next three years.

The survey results indicated that 54% of the participants have shown a strong inclination towards investing in digital assets within the upcoming three-year period. Moreover, a notable 25% of companies have conveyed a favorable view towards cryptocurrencies. Notably, 62% of the respondents perceive cryptocurrencies as a means of diversifying their investment portfolios alongside traditional assets like cash, stocks, bonds, and commodities.

This growing acceptance of digital assets as a legitimate investment avenue is evident from the survey findings. Investors are leaning towards allocating 2% to 5% of their assets under management (AUM) to digital assets, with nearly 80% of the respondents planning to make their investments within a year.

The evolving landscape of investment products, which includes the emergence of exchange-traded funds (ETFs), investment trusts, and staking and lending options, is identified as a catalyst for future investments in the cryptocurrency domain. A significant portion of the survey participants has shown interest in investing directly in Web3 projects or through venture capital funds.

However, despite the growing enthusiasm, there are still obstacles deterring some managers from entering the digital asset realm. Challenges such as counterparty risks, high volatility, and regulatory concerns are cited as hindrances.

The survey findings from Nomura underscore a noteworthy transformation in the attitudes of Japanese institutional investors towards cryptocurrencies, indicating a rising curiosity and substantial investment prospects in the sector in the foreseeable future.