Bitrabo Editorial
A recent survey by Nomura Holdings and Laser Digital Holdings uncovered the shifting attitudes of Japanese institutional investors towards cryptocurrencies. The survey, which gathered responses from 547 investment managers across various sectors, indicated a growing interest in digital assets.
Enthusiasm for Crypto
Approximately 54% of the investors expressed plans to explore the cryptocurrency market in the next three years, aiming to diversify their investment portfolios. The survey highlighted the appeal of cryptocurrencies as speculative tools and components of diversified investment strategies.
While only 16% view digital currencies as potential substitutes for traditional base currencies, a significant 62% see them as high-return investment prospects, emphasizing their unique attributes such as low correlation with other assets.
Investors planning to include digital assets intend to allocate 2% to 5% of their assets under management, with a minimum investment horizon of one year. Apart from direct investments, interest in activities like staking, mining, and lending is also on the rise.
Challenges in this endeavor include the lack of established fundamental analysis methods, high volatility, and concerns about counterparty risks.
Regulatory Landscape in Japan
Compared to neighboring countries like China, Japan’s regulatory environment towards cryptocurrencies appears more favorable. Recent policy adjustments have allowed venture capital firms and investment funds to directly hold cryptocurrencies, signaling a proactive stance from Japanese regulators.
Under Prime Minister Kishida’s administration, efforts are being made to support the growth of Web3 and digital asset firms to revitalize Japan’s economy. The potential introduction of crypto ETFs could further boost market activity, with 53% of surveyed investors showing interest in such products.
This supportive regulatory environment has already had tangible effects, with companies like Metaplanet Inc. making significant investments in Bitcoin and incorporating it into their treasury assets for long-term holding.
Featured image created with DALL-E, Chart from TradingView