Institutional Investors in Japan Warming Up to Crypto, Nomura Survey Shows

A recent survey by Japanese financial giant Nomura Holdings and its digital currency arm, Laser Digital, has revealed a surprising trend – a growing interest in cryptocurrency among institutional investors in Japan.

The survey, which targeted investment managers, found that more than half (54%) are open to allocating a portion of their portfolios to cryptocurrencies within the next three years. This suggests a significant shift in the perception of digital assets among this traditionally conservative investor class. The survey results highlight two key motivations for this newfound interest:

• Portfolio Diversification: Cryptocurrencies offer a unique asset class with characteristics that can help diversify investment portfolios. Their price movements often have little correlation with traditional assets like stocks and bonds, potentially reducing overall portfolio risk.
• Hedge Against Inflation: With inflation on the rise globally, investors are seeking assets that can potentially outperform inflationary pressures. Cryptocurrencies, with their limited supply, are viewed by some as a potential hedge against inflation.

These findings come amidst a backdrop of increasing regulatory clarity and acceptance of cryptocurrency in Japan. The country has been at the forefront of crypto regulation, establishing a licensing framework for cryptocurrency exchanges in 2017. 

This regulatory framework, while strict, has provided a level of comfort for institutional investors.

Overall, the Nomura survey suggests that institutional investors in Japan are becoming increasingly comfortable with cryptocurrencies. While the survey doesn't specify which cryptocurrencies are of interest, it likely includes major players like Bitcoin and Ethereum, which offer greater stability and liquidity compared to other digital assets. 

June 2024, Cryptoniteuae