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Professional investors are still interested in crypto, but want support from large traditional financial institutions before taking the plunge, a survey conducted by Nomura’s digital assets arm showed.
Institutional investor interest in crypto has stalled in recent weeks due to growing regulatory uncertainty in the United States and regulatory action on the industry as a whole.
In the Laser Digital Investor Survey in April, 90% of professional investors surveyed said it was important to have the backing of a “large traditional financial institution” for any cryptocurrency asset fund or investment vehicle before they or their clients would consider investing money. inside.
However, a whopping 96% of them viewed digital assets as “presenting an investment diversification opportunity” in addition to traditional asset classes such as fixed income, cash, stocks and commodities.
Industry watchers are predicting an increase in institutional investment following the filing of the BlackRock spot ETF.
With more accessibility and institutional involvement, the bull’s roar will only get louder.
— cryptocurrency ENTJ (@CryptoEntj) June 16, 2023
In addition, 82% of professional investors surveyed are optimistic about the crypto asset class as a whole over the next 12 months. They specifically mentioned Bitcoin (BTC) and Ethereum (ETH), with almost half of the respondents citing the pair as the backbone of the Web3 economy and a “long-term source of investment opportunity.”
Dr. Jez Mohideen, CEO of Laser Digital, said the study shows that institutional investors see “the clear role of digital assets in the investment management landscape and the benefits they can bring, such as greater portfolio diversification.”
However, about three-quarters of them said that “legal or regulatory restrictions” could prevent their firms or clients from investing in crypto-related funds or products.
Since the FTX crash in November, global regulators have hit hard on the digital asset sector, but many countries are actively implementing rules for the new asset class.
Laser Digital conducted an independent global survey of institutional investors from 21 countries in Europe, the Middle East, Asia, South Africa and Latin America.
More than 300 institutional investors with $4.9 trillion in total assets were surveyed, including asset managers, pension funds, hedge funds, mutual funds and insurance asset managers.
Related: Institutions ‘Extremely Interested’ In Crypto ETFs, But Buying Has Cooled Down: Poll
Nomura launched its Laser Digital cryptocurrency venture arm in September 2022.
In case you missed it…https://t.co/QFYeKA596L pic.twitter.com/OniCjtxusI
— Laser Digital (@LaserDigital_) October 18, 2022
A subsidiary of the Japanese banking giant is focusing on Asia for the next surge in the cryptocurrency industry. On June 13, Mohideen said regulatory clarity in Japan and Hong Kong will boost retail participation.
“Asia has benefited from what happened in the US and realized what they should avoid,” he said.