Nomura Holdings and its digital asset subsidiary, Laser Digital, present the results of their recent survey, “Institutional Investor Survey on Digital Asset Investment Trends.” More than 500 investment managers in Japan were surveyed. 54% responded that they intend to invest in crypto assets over the next 3 years.
In light of the changing environment surrounding digital assets in Japan, the survey was conducted to understand the investment trends and intentions of Japanese investment managers in digital assets, including future investment intentions and investment ratios for crypto assets, as well as the issues which arise when considering investment in crypto assets.
More than 500 investment managers in Japan were surveyed, from institutional investors, family offices and public-service corporations in Japan, with AUM ranging from several hundred million yen to several hundred billion yen. The study found that over half of those surveyed are motivated to invest in digital assets to some extent in the future as 54% responded that they intend to invest in crypto assets over the next 3 years.
In addition, 25% of respondents said they have a “Positive” impression of crypto assets. 62% see crypto assets as a diversification opportunity, and many of those surveyed see crypto assets as an investment asset class. It was indicated that when investing in crypto assets, the preferred allocation is 2~5% of AUM.
For the respondents who are investing or considering investing in crypto assets, the drivers for future investment were the development of a variety of products such as ETFs, investment trusts, staking, lending and other products. Also, about half of the respondents said that they would like to invest in Web3 projects either directly or via VC funds. A change in the Limited Partnerships Act would help to facilitate these investments. This revision in the law, which is expected later this year, would add crypto assets to the list of assets that LPs can acquire.
For the respondents who are not currently considering investing, barriers to entry include counterparty risk, high volatility and regulatory requirements. However, these hurdles could soon be lowered, as Japan’s digital asset laws and regulations are rapidly being developed, enabling increased engagement from institutional investors in the future.
Download the survey here.
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