In Japan, 54% of institutional investors are considering acquiring cryptocurrencies as they offer portfolio diversification and potentially high returns.
More than half of Japanese institutional investors plan to invest in crypto-assets over the next three years, according to a survey by Nomura Holdings. The survey included 547 investment managers representing institutional funds, family offices, and public corporations.
The key reasons for interest in digital assets among the respondents include:
- The ability to diversify their investment portfolio.
- Potentially high levels of returns.
- Low correlation with other asset classes.
- The opportunity to hedge against inflation risks.
- 24/7 trading availability.
Almost half of the respondents also showed interest in investing in Web3 projects directly or through venture funds. Additionally, investors are interested in digital asset-based exchange-traded funds (ETF), investment trusts, staking programs, and crypto lending.
Among those intending to invest in the cryptocurrency market, approximately two-thirds plan to allocate 2–5% of their capital for this purpose. The main barriers to investment highlighted by the respondents include counterparty risk, high volatility, and stringent regulatory requirements.
Overall, 25% of the respondents are optimistic about the development of the crypto sector in Japan. This can be attributed to the active efforts of Japanese authorities, who are working to create a “welcoming atmosphere” for the crypto business. This approach is yielding practical results, as evidenced by Ripple Labs’ recent announcement to introduce corporate financial Web3 solutions in the Japanese market.
