Nomura Assesses Bitcoin Investment Among Japan’s Traditional Finance Sector

In Japan, 54% of institutional investors plan to allocate funds to cryptocurrencies within the next three years, according to a survey conducted by Laser Digital, a subsidiary of Nomura.

Among these investors, 66% are prepared to allocate 2-5% of their available capital, with 76% pledging to act on these plans within a year.

While 25% of respondents expressed a positive impression of digital assets, 52% remained neutral.

The development of new products, including exchange-traded funds, trusts, and staking and lending offerings, was identified as a key factor enhancing the appeal of bitcoin and its competitors.

62% of the study’s participants view cryptocurrencies as a diversification opportunity alongside stocks, bonds, and commodities, considering them a distinct asset class.

One in three mentioned the low correlation with TradFi, a hedge against inflation, and high growth potential.

About half of the respondents expressed interest in investing directly in Web3 projects or through venture funds.

Respondents cited insufficient fundamental justification, counterparty risk, high volatility, and regulatory requirements as obstacles to current investments.

The survey included 547 Japanese managers, encompassing institutional investors, family offices, and state-owned corporations, conducted from April 15 to 26.

Back in March 2024, Nickel Digital found that 74% of institutional investors and asset managers intend to increase their positions in cryptocurrencies.