FameEX Hot Topics | 54% of Japanese Institutional Investors Intend to Invest in Cryptocurrency

A recent survey conducted 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 primarily driven by the desire for portfolio diversification and the high return potential of digital assets. The survey, titled "Institutional Investor Survey on Digital Asset Investment Trends," was released on June 24 and included responses from 547 investment managers, encompassing institutional investors, family offices, and public-service corporations.

The survey sought to understand the intentions of Japanese investment managers 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 rest 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 a valuable diversification opportunity. Regarding 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 hold a "positive" impression of crypto assets, suggesting an optimistic outlook for the crypto sector's future 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 expressed 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 remain hesitant to enter the crypto market, citing several barriers. Their concerns include counterparty risk, high volatility, and stringent regulatory requirements. Addressing these challenges is essential to fostering 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.