The majority of institutional investors in Japan intend to invest in cryptocurrencies within the next three years.
Crypto

The majority of institutional investors in Japan intend to invest in cryptocurrencies within the next three years.

According to a survey conducted by Nomura (NMR) and its digital asset subsidiary Laser Digital, more than half of the Japanese investment managers surveyed said they intend to make investments in digital assets within the next three years. The poll revealed that 25% of businesses thought favourably of digital assets, and 54% of participants planned to invest in cryptocurrencies within the next three years.

According to the study, many investors see digital assets as an asset class for investments, and 62% of those surveyed saw cryptocurrency as a diversification possibility alongside cash, equities, bonds, and commodities.

Investors stated that 2% to 5% of assets under management (AUM) was the ideal allocation to digital assets, and over 80% stated they would make an investment over a one-year period. The creation of new goods may encourage more money to be invested in digital assets. The creation of new products, such as exchange-traded funds (ETFs), investment trusts, and staking and lending offers, was the primary motivator for future investment for those who were already active in cryptocurrencies or were considering investing in digital assets.

Approximately 50% of those surveyed said they would prefer to use venture capital funds or personally invest in Web3 projects.

However, some managers are not making investments in digital assets because of entrance hurdles. According to the study, these obstacles include counterparty risk, significant volatility, and regulatory constraints. Between April 15 and April 26, the bank polled 547 Japanese investment managers, comprising family offices, institutional investors, and public-service enterprises.