More than half of institutional investors in Japan are planning to venture into the crypto market over the next three years, citing portfolio diversification and potential high returns as primary motivations.
A recent survey conducted by financial services firm Nomura Holdings and its digital asset arm Laser Digital revealed significant interest among Japanese investment managers in digital assets. The “Institutional Investor Survey on Digital Asset Investment Trends” involved 547 respondents, including institutional investors, family offices, and public-service corporations.
According to the findings, 54% of respondents expressed intentions to enter the crypto space within the next three years. Most managers indicated they were either inclined or highly likely to make such investments. In contrast, a smaller proportion expressed reluctance.
Investors highlighted several reasons driving their interest in crypto assets. Primary among these was the opportunity to diversify portfolios, a sentiment shared by 60% of survey participants. Other factors included crypto assets’ low correlation with traditional investments, their potential as a hedge against inflation, and the round-the-clock availability of crypto markets.
In terms of asset allocation, a majority of managers favored dedicating between 2% to 5% of their portfolios to crypto investments over the next three years. This allocation strategy was preferred by 66% of respondents.
The survey also revealed a positive sentiment towards crypto assets, with 25% of respondents holding an optimistic view of their future prospects in Japan’s investment landscape.
The results underscore a growing recognition among Japanese institutional investors of crypto’s potential benefits, positioning digital assets as an increasingly attractive component for diversified investment strategies in the coming years.
Summary Review: The survey by Nomura Holdings and Laser Digital paints a clear picture of the evolving sentiment among Japanese institutional investors towards cryptocurrency investments. With over half of respondents indicating their intention to enter the crypto market within the next three years, driven by the potential for portfolio diversification and promising returns, there is a notable shift towards embracing digital assets. The findings reflect a growing acceptance of crypto assets as a viable investment tool, offering advantages such as low correlation with traditional assets, inflation hedging capabilities, and the accessibility of 24/7 trading markets. As institutional interest continues to grow, it is evident that digital assets are poised to play a significant role in shaping investment strategies in Japan’s financial landscape moving forward.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.