Japanese Institutions Eye Crypto for Diversification and Inflation Hedging, Nomura Survey Reveals

• A new survey reveals that Japanese institutional investors are expanding their portfolios to include cryptocurrencies.
• Conducted by Laser Digital, a branch of Nomura, the survey interviewed over 500 investment managers across Japan.
• “Over 500 investment managers from institutional investors, family offices, and public-service corporations were surveyed, holding AUM (assets under management) from several hundred million yen to several hundred billion yen.”

This article delves into the recent findings and their implications for the future of cryptocurrency investments in Japan.

Japanese Institutional Investors Eye Crypto Investments

The survey conducted by Nomura’s Laser Digital reveals that a significant number of Japanese institutional investors are planning to allocate funds towards cryptocurrencies within the next three years. This includes investment managers from a variety of sectors, indicating a broad interest in crypto assets across different types of institutions.

Diversification and Low Correlation Motivating Crypto Investments

The primary drivers behind this increasing interest include diversification benefits and the low correlation of cryptocurrencies with other asset classes. According to the survey, 60% of respondents see digital assets as a strategic diversification tool, while 38% appreciate the low correlation with traditional investments, offering a risk management advantage.

Inflation Hedge and Return Potential

One-third of the respondents identified cryptocurrencies as a hedge against inflation, with 37% recognizing this advantage. Additionally, 30% of those surveyed were drawn to the high return potential of the crypto market, and 9% valued its 24/7 trading nature.

Long-Term Commitment to Crypto Assets

The survey further highlights a long-term perspective among Japanese institutional investors. A notable 80% of respondents are prepared to hold their crypto investments for at least one year, underscoring their confidence in the enduring value and potential growth of digital assets.

Conclusion

In summary, the interest among Japanese institutional investors in cryptocurrencies is growing, driven by diversification, low correlation with other assets, and the promise of high returns. With a significant number of these investors committed to a long-term strategy, the integration of crypto assets into traditional investment portfolios is likely to deepen, positioning Japan as a notable player in the global cryptocurrency market.