Most Japanese Institutional Investors Plan to Invest in Cryptocurrency in the Next 3 Years
Date: 2024-06-25 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
A study conducted by Nomura and its digital asset subsidiary Laser Digital found that more than half of Japanese investment managers plan to invest in cryptocurrency in the next three years. This survey provides valuable data on institutional investor sentiment and intentions regarding digital assets.
Investment Plans for the Next Three Years
The survey showed that 54% of companies surveyed intend to invest in cryptocurrency in the next three years. This indicates growing interest in digital assets among Japanese institutional investors. In addition to this, 25% of respondents expressed a positive attitude towards cryptocurrencies, highlighting the potential of this asset class.
According to the study, 62% of respondents consider cryptocurrency an opportunity for diversification, along with traditional assets such as cash, stocks, bonds and commodities. This indicates the recognition of cryptocurrencies as an important investment tool.
Preferred Asset Allocation
Investors reported that their preferred cryptocurrency allocation in their portfolios was between 2% and 5% of assets under management (AUM). Notably, almost 80% of those surveyed said they planned to invest in digital assets over the next year.
The development of new financial products can significantly stimulate investment in digital assets. For those already investing in cryptocurrency or considering the opportunity, the main drivers are new products such as exchange-traded funds (ETFs), investment trusts, and staking and lending offerings. About half of the respondents expressed a desire to invest in Web3 projects directly or through venture funds.
Barriers to Entry
Despite growing interest, there are significant barriers to entry into the digital asset market. These barriers include counterparty risk, high volatility of cryptocurrencies and regulatory requirements. These factors have deterred some managers from investing in digital assets, highlighting the need for improved infrastructure and market regulation.
Between April 15 and April 26, 2024, Nomura surveyed 547 Japanese investment managers, including institutional investors, family offices and public service corporations. The study results indicate significant interest in cryptocurrencies among Japanese institutional investors, despite existing barriers and risks. In the future, we can expect increased investment in digital assets as new products are developed and regulation improves.
