Survey Shows 54% of Japanese Institutional Clients Plans to Invest in Crypto

Survey Shows 54% of Japanese Institutional Clients Plans to Invest in Crypto

The growing popularity of crypto assets has encouraged most investors to tap the opportunities in the digital sector. A study by Laser Digital depicts that Japanese investors are willing to invest in crypto assets.

The study examined whether institutional investors were interested in crypto assets. To gather reliable data, Laser Digital used the survey approach to assess the financial products preferred by the institutional clients.

Factors Contributing to the Growth of Crypto Adoption in Japan

Reportedly, the Laser team deployed various data collection methods in the study, “Institutional Investor Survey on Digital Asset Investment Trends.” The target group comprised 547 investment managers operating in Japan as institutional clients.

Other respondents were working in family businesses and public service companies. The survey objective was to examine the preference of institutional clients in crypto investments. Also, the study aims to assess factors that hinder Japanese investors from venturing into crypto investments.

In their finding, the Laser team noted that half of the respondents were willing to invest in crypto within the next three years. The survey depicts that 54% of the respondents will invest in crypto assets before 2027.

The Laser team observed that most managers were optimistic about investing in digital assets. The remaining percent were uncertain whether they should invest in crypto. To improve the accuracy of the data, the Laser team backed the survey with several study questions.

Institution Investors Show Interest in Crypto Investment

Firstly, the study asked the respondents why they wanted to invest in crypto assets despite their volatile nature. The respondent claimed that cryptocurrency allowed them to diversify their investment portfolio.

The Laser noted that 60% of the respondents sought to expand their investment portfolio through crypto. Others claimed they wanted to invest in crypto to hedge the biting inflation and maximize their return on investment.

Compared to other financial products, the respondent claimed that crypto had a lower correlation and was easily accessible. Occasionally, the crypto marketplace operates 24/7, unlike ordinary financial products.

The second question asked during the survey was about how much money investors were willing to invest in crypto. The Laser team noted that 66% of the respondents were to allocate approximately 2-5% to crypto in the next three years.

The Laser team noted that 25% of the respondents were optimistic about reaping substantial gains from crypto investment.

Also, the survey analyzed the factors contributing to crypto investment. They noted that most Japanese investors desired to generate income from crypto investments.

Benefits of Investing in Crypto Assets

Unlike traditional finance, investors noted that crypto offered multiple opportunities, such as staking and lending options, which are crucial in expanding the revenue stream. With the approval of the crypto exchange-traded funds, some Japanese investors sought to gain exposure to Bitcoin and Ethereum.

Also, Japanese investors showed a growing interest in different classes of assets, such as Web3 and non fungible tokens (NFTs). The investors obtained Web3 products directly or through third parties to comply with the existing law.

A few months ago, legislators amended the Limited Partnership Act to incorporate crypto assets into various types of assets that limited partners can acquire. Irrespective of the growing popularity of crypto among the Japanese, some investors were afraid of investing in digital assets.

The Laser team noted that some investors complained that the volatile nature of crypto assets and the lack of a clear regulatory framework barred them from investing in digital assets.

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