Investment Managers in Japan Eye Crypto Assets for Portfolio Diversification and Risk Reduction

• 54% of Japanese investment managers plan to invest in crypto assets in the next 3 years.
• 25% have a positive view of cryptocurrencies like bitcoin and ether.
• 62% see crypto assets as a diversification opportunity.
• Primary drivers for investment include ETFs, staking, lending, and other financial products.
• Japan aims to develop its Web3 industry under Prime Minister Kishida's "new capitalism" policy.
• Government approved tax regime revision to exclude corporations from tax on unrealized crypto gains.

Summary :
A recent survey conducted by Nomura Holdings and its digital asset arm, Laser Digital, revealed that more than half of the investment managers in Japan are planning to invest in crypto assets over the next three years. The survey, which involved over 500 investment managers, found that 54% of respondents were interested in investing in crypto to stabilize their portfolios and reduce risk through diversification and hedging against inflation. Additionally, 25% of respondents held a positive impression of cryptocurrencies, particularly bitcoin and ether, while 62% saw crypto assets as a diversification opportunity. The survey was conducted following the approval of a proposal by the Japanese cabinet in February to include crypto in the list of assets that local investment limited partnerships can acquire or hold. Nomura stated that the revision to the Limited Partnerships Act is expected later this year. The study also revealed that the primary drivers for future investment in crypto assets among respondents include the development of various products such as exchange-traded funds, investment trusts, staking, lending, and other financial products. The Japanese government, under Prime Minister Fumio Kishida's "new capitalism" economic policy, aims to develop its Web3 industry. In December, the government approved a tax regime revision that exempts corporations from paying tax on unrealized crypto gains if they hold the assets for the long term.

Sources :

- TheBlock