Japanese Investment Managers Embrace Digital Assets as Diversification Opportunity

• 54% of Japanese investment managers plan to invest in crypto in next 3 years.
• 25% of firms have a positive impression of digital assets.
• Preferred allocation to crypto is 2%-5% of AUM.
• 62% view crypto as a diversification opportunity.
• Main driver for future investment is development of new products.
• Barriers to entry include counterparty risk and regulatory requirements.

Summary :
Over half of Japanese investment managers surveyed by Nomura and its digital asset subsidiary, Laser Digital, plan to invest in digital assets in the next three years. The survey revealed that 54% of respondents intend to invest in crypto, with 25% expressing a positive impression of digital assets. Many investors view crypto as a diversification opportunity alongside traditional assets such as cash, stocks, bonds, and commodities. The preferred allocation to digital assets is between 2% and 5% of assets under management (AUM), and nearly 80% of investors plan to invest over a year. The development of new products, including ETFs, investment trusts, and staking and lending offerings, is expected to drive future investment. However, barriers such as counterparty risk, high volatility, and regulatory requirements are still preventing some managers from entering the digital asset market. The survey was conducted among 547 Japanese investment managers, including institutional investors, family offices, and public-service corporations.

Sources :

- Coindesk