Institutional Investors Interested in Crypto, But Wait for Traditional Banks Support

Institutional investors are increasingly showing interest in cryptocurrencies, according to a study conducted by Japanese Nomura Laser Digital. Despite the regulatory uncertainties in the United States, a significant portion of investment firms see crypto as a viable addition to their portfolios.

Institutions Await Clarity

Nomura’s research indicates that 96 percent of investment firms consider cryptocurrencies as realistic investments. However, an overwhelming 90 percent of these firms express their desire to have the support of major traditional financial institutions before venturing into the crypto space. This reliance on banks stems from client hesitancy and concerns regarding the perceived risks associated with cryptocurrencies. With the backing of established financial institutions, these concerns could likely dissipate. Notably, 82 percent of investment firms express optimism, particularly in Bitcoin (BTC) and Ethereum (ETH), considering them as foundational assets in the emerging Web3 sector.

Furthermore, three-quarters of surveyed institutions cite legal and regulatory restrictions as key barriers to crypto investments. Should positive regulatory developments occur, it could catalyze a bullish trend for the crypto sector. The influx of capital from institutional investors, waiting eagerly on the sidelines, could be unparalleled once regulatory clarity is achieved.

Asia Leads Crypto Adoption

The research conducted by Nomura encompasses more than 300 investment firms worldwide. A significant finding is the expectation of Asia being at the forefront of the next wave of crypto adoption. The disparity between Asia and the United States, for instance, is quite noticeable. Asian countries such as Japan and Hong Kong are already leading the region in terms of legislative clarity for the crypto industry. Hong Kong, in particular, has recently begun issuing official licenses to cryptocurrency companies.