A survey conducted by Nomura revealed that more than half of Japanese investors want to invest in cryptocurrencies in the next three years.
Cryptocurrencies are gaining more and more attention within the financial world, becoming the preferred investment assets for many.
The growing adoption that cryptocurrencies are experiencing is related to the great profitability potential they offer their investors, as well as the accessibility and opportunity to explore new markets.
In fact, examining Japanese investors' interest in cryptocurrencies, Nomura found that more than half of them are attracted to this new class of digital assets, which is why they expect to integrate crypto assets into their investment portfolios in the next 3 years.
Nomura conducted a survey with its subsidiary Laser Digital Holdings to find out the current trends of Japanese investors in the crypto market. The results of the survey, titled "Survey on Digital Asset Investment Trends for Institutional Investors 2024", They explain that the main reasons that motivate Japanese investors to be interested in investing in cryptocurrencies are: diversification of portfolios, the generation of high yields and the growing confidence in these digital assets as inflation hedge.
Japanese prefer Bitcoin and Ethereum
According to the survey, a quarter of investors in Japan have a positive impression of cryptocurrencies, especially Bitcoin and Ethereum.
Source: Nomura
Both cryptocurrencies, which are the most capitalized in the market, have distinctive characteristics that have allowed them to establish a solid reputation in the market, offering stability, security and innovation to their holders. This has led to both Bitcoin and Ethereum achieving their current success, motivating more investors to enter the digital asset market.
Cryptocurrencies can help their investors to to diversify their portfolios, including a new class of assets that have a low correlation with other existing ones. Also, due to price volatility, cryptocurrencies can serve investors looking to obtain potential returns and significant profits on their investments. Finally, they can serve as a haven of value long-term in the face of global political and economic uncertainty.
According to Nomura, investors in the country are increasingly interested in cryptocurrencies as an alternative to better diversify and manage their investment portfolios and to reduce risk.
Lack of regulation hinders crypto investment
Despite its growing popularity and adoption, many Japanese investors face several barriers to entry that limit their participation within the digital world.
According to the survey, investors identified the lack of a clear regulatory framework as one of the main constraints when investing in cryptocurrencies. They also identified high taxes and price volatility as other potential obstacles to investing or increasing their current crypto holdings.
However, Nomura also highlighted that cryptocurrency regulations in Japan are developing rapidly, ahead of most countries in the world. Japan has implemented several regulatory changes and reforms that aim to improve the conditions for the development of the crypto and Web3 industry, the company emphasized. Nomura cited the definition of security tokens, the establishment of regulations for cryptocurrency exchange operations, and the regulation of stablecoins as positive actions that are increasing the use and adoption of cryptocurrencies in the country.
Nomura's survey was conducted among more than 540 investment institutions, including institutional managers, family offices and public service corporations, to determine the opinion and intention of institutional investment in Japan towards cryptocurrencies. The survey was conducted between April 15 and April 26.
