A recent survey conducted by Nomura Holdings, Japan’s largest brokerage, and its digital asset arm, Laser Digital, has unveiled a remarkable trend in the Japanese investment landscape. The survey, which involved over 500 investment managers in Japan, found that a staggering 54% of respondents intend to invest in cryptocurrency assets over the next three years.
Diversification and Inflation Hedging Drive Crypto Adoption
The survey results shed light on the primary motivations behind this surge in institutional interest. According to the findings, the respondents are drawn to crypto assets as a means to stabilize their portfolios and reduce risk through diversification. Additionally, a significant portion, around 62% of investment managers, view cryptocurrencies as a valuable hedge against inflation.
Regulatory Shift Paves the Way for Institutional Adoption
The timing of the survey is notable, as it follows the Japanese cabinet’s approval in February to add crypto to the list of assets that local investment limited partnerships can acquire or hold. This revision to the Limited Partnerships Act is expected to be implemented later this year, further solidifying the legal framework for institutional investors to engage with the crypto ecosystem.
Product Innovation Fuels Institutional Appetite
Nomura’s study also highlighted the importance of product development in driving institutional adoption. The survey respondents indicated that the availability of a variety of crypto-based financial products, such as exchange-traded funds (ETFs), investment trusts, staking, and lending services, would be a key factor in their future investment decisions.
Japan’s “New Capitalism” and the Crypto Opportunity
The growing institutional interest in crypto aligns with the Japanese government’s broader “new capitalism” economic policy, which includes a focus on developing the country’s Web3 industry. As part of this initiative, the government has approved a tax regime revision that seeks to exclude corporations from paying tax on unrealized crypto gains if they hold the assets long-term.
This comprehensive survey by Nomura and Laser Digital provides a compelling snapshot of the evolving attitudes towards crypto assets within the Japanese investment management community. The findings underscore the significant shift in institutional sentiment, driven by the desire for diversification, inflation hedging, and the emergence of crypto-focused financial products. As Japan continues to shape its regulatory landscape and embrace the “new capitalism” agenda, the crypto market is poised to play an increasingly crucial role in the country’s investment landscape.