FameEX Hot Topics | 54% of Institutional Investors in Japan Plan to Invest in Cryptocurrency

A recent survey by Nomura Holdings and its digital asset arm, Laser Digital, reveals that 54% of Japanese institutional investors plan to invest in cryptocurrencies over the next three years. This interest is driven by portfolio diversification and high return potential. The survey, titled "Institutional Investor Survey on Digital Asset Investment Trends," was released on June 24 and involved 547 investment managers, including institutional investors, family offices, and public-service corporations.

The survey aimed to understand Japanese investment managers' intentions regarding digital assets and the challenges they face when considering crypto investments. Among the respondents, 54% expressed interest in investing in crypto within the next three years. Most managers indicated they "want to invest" or are "more likely to invest," while the remainder stated they "most likely don’t want to invest" or "don’t want to invest."

The primary motivation for investing in digital assets is portfolio diversification, with 60% of respondents viewing crypto as an opportunity for diversification. When it comes to allocation, most managers prefer to allocate 2-5% of their assets to crypto, with 66% choosing this range for their crypto investments in the next three years. Additionally, 25% of those surveyed have a "positive" impression of crypto assets, indicating an optimistic outlook for the future of the crypto sector in Japan.

The survey also identified key drivers for those already investing or considering investing in crypto. The development of crypto exchange-traded funds (ETFs), investment trusts, staking, and lending options were highlighted as crucial reasons for considering crypto investments.

Furthermore, nearly half of the respondents showed interest in investing in Web3 projects, either directly or through venture capital funds. The anticipated revision of the Limited Partnerships Act, which would include crypto assets among the assets that Limited Partners (LPs) can acquire, is expected to facilitate these investments. However, some investment managers are hesitant to enter the crypto market, citing several barriers. Their concerns include counterparty risk, high volatility, and stringent regulatory requirements. These challenges need to be addressed to foster greater institutional participation in the crypto market.

In summary, the survey indicates a strong interest among Japanese institutional investors in crypto investments, driven by diversification and high return potential, despite facing certain challenges and barriers.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.