Japanese institutional investors are showing a growing interest in crypto investments, according to a survey conducted by Nomura and its digital asset subsidiary Laser Digital. The survey revealed that over half of the Japanese investment managers they spoke to are planning to invest in digital assets within the next three years.
In fact, 54% of the firms surveyed expressed their intention to invest in crypto in the coming years, while a quarter of the respondents had a positive impression of digital assets. Many investors see crypto as a diversification opportunity, alongside traditional investment options such as cash, stocks, bonds, and commodities. The survey also highlighted that digital assets are increasingly being viewed as a legitimate investment asset class.
When it comes to allocation, investors indicated that they preferred to allocate between 2%-5% of their assets under management (AUM) to digital assets. Additionally, nearly 80% of the respondents stated that they would be investing in digital assets over the course of a year.
The survey also pointed out that the development of new products in the crypto space could further boost investment. Investors are particularly interested in new offerings such as exchange-traded funds (ETFs), investment trusts, and staking and lending opportunities. In fact, about half of the respondents expressed their desire to invest directly in Web3 projects or through venture capital funds.
Despite the growing interest in crypto investments, there are still barriers preventing some managers from entering the space. These barriers include concerns about counterparty risk, high volatility, and regulatory requirements. However, as the crypto market continues to evolve and new products are introduced, these barriers may start to diminish.
The survey conducted by Nomura involved 547 Japanese investment managers, including institutional investors, family offices, and public-service corporations. The findings of the survey suggest that the landscape of institutional investing in Japan is changing, with more investors looking to diversify their portfolios with digital assets. As the crypto market matures and new investment opportunities arise, it will be interesting to see how institutional investors in Japan navigate this evolving landscape.