Majority of Japanese Institutional Investors Plan to Invest in Crypto in Next Three Years: Nomura Survey

As an analyst, I’d interpret the survey results by saying that approximately two out of every three respondents (54%) expressed their intention to invest in cryptocurrencies within the next three-year timeframe. Additionally, one in four firms (25%) reported having a favorable view towards digital assets.

Six out of ten respondents in the study regarded cryptocurrency as a viable diversification option, alongside traditional investments such as cash, stocks, bonds, and commodities. Many investors consider digital assets as a distinct investment class.

As a researcher investigating the preferences of investors regarding digital asset allocation, I’ve discovered that the suggested range is between 2% and 5% of their total Assets Under Management (AUM). Additionally, approximately 80% of these investors expressed their intent to make investments within a year.

New product innovations could spur increased investment in digital assets for both current crypto investors and those considering a entry into the digital asset market. The primary motivation for future investments stems from the introduction of new financial instruments such as exchange-traded funds (ETFs), investment trusts, and staking and lending platforms. According to recent survey findings, approximately half of the respondents expressed interest in investing directly in Web3 projects or through venture capital funds.

As a researcher studying the adoption of digital assets by managers, I’ve come across certain obstacles that hinder investment in this area. Among these challenges are the risks associated with counterparties, the unpredictability of asset values due to high volatility, and the stringent regulatory requirements.

Between April 15 and April 26, the bank conducted a survey of 547 Japanese investment managers, which consisted of institutional investors, family offices, and public-service corporations.