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Over Half of Japanese Investment Managers to Adopt Cryptocurrencies, Survey Reveals
- Current crypto market trends show declines influenced by Spot Ether applications and Bitcoin’s fall below $60K, exacerbated by Mt. Gox’s repayments.
- However, over 50% of institutions in Japan, surveyed by Nomura, plan to invest in crypto within three years, viewing it as a diversification option.
- Regulatory updates and a redefinition of crypto assets are anticipated, aiming to facilitate standard financial practices and boost adoption.
You could be forgiven for being somewhat pessimistic about the crypto market right now.
First, there are rumours about the Spot Ether applications potentially negatively affecting the ETH price.
Related: Konami, Creator of Metal Gear Solid, Joins NFT Arena with Avalanche Launch
Also, with Bitcoin dropping below US$60K earlier and the overall crypto market in the red, news is circulating that Mt. Gox debtors are soon receiving US$9bn in repayments which is expected to further push crypto asset prices south.
All in all, not what most have hoped for.
But there may be a silver lining on the horizon with news coming out of Japan.
More Than 50% of Institutions to Invest in Crypto: Nomura
Research by Japanese financial holding company Nomura shows that more of the traditional finance sector (trad-fi) in the East Asian nation is getting behind the asset class. The survey, conducted with the input of over 500 asset managers, found that 54% of respondents plan to buy digital assets within the next three years.
The survey added that there is a growing number in the trad-fi sector who see crypto as a positive and valid diversification option.
25% of respondents said they have a ‘Positive’ impression of crypto assets. 62% see crypto assets as a diversification opportunity, and many of those surveyed see crypto assets as an investment asset class. It was indicated that when investing in crypto assets, the preferred allocation is 2~5% of AUM.
Nomura According to Nomura, respondents are driven by the development of diverse crypto financial products and the potential to invest in Web3 projects, facilitated by upcoming changes to the Limited Partnerships Act.
Regulatory Changes Key to Adoption
Those survey respondents who are hesitant to invest in crypto cite concerns like counterparty risk and volatility, but they may be encouraged by the fast-evolving digital asset regulations in Japan.
According to a Japanese news post, such regulatory changes could come sooner than later.
Seiji Kihara, head of the Liberal Democratic Party’s “blockchain promotion” group and Masaaki Taira, chair of the party’s web3 adoption unit, told Japanese publication CoinPost that the time to redefine crypto regulation has come, due to increased interest and adoption.
Related: Standard Chartered Introduces Spot Crypto Trading Amid Growing Institutional Demand
They said that the evolution of crypto from legal currency substitutes to widely traded financial assets necessitates a redefinition to align with their current financial role, similar to commodities such as gold.
It’s hoped this would facilitate standard handling by financial institutions. They also stressed the need for updated regulations and tax reforms to reflect these changes.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
