Laser Digital, the digital assets subsidiary of Japan’s largest investment bank, Nomura, has launched a Bitcoin Adoption Fund for institutional investments. The product will use Komainu, a custom custody solution built by Nomura, Ledger, and CoinShares, to offer investors long exposure to Bitcoin.
The Laser Digital Bitcoin Adoption Fund will afford investors access to Bitcoin (BTC) in a “cost-effective” and secure” product with “the highest levels of risk management and compliance.” The fund is part of Laser’s Digital Funds Segregated Portfolio company, registered in the Cayman Islands.
New Product Launches Amid Mounting Institutional Interest
According to Sebastien Guglietta, the Head of Laser Digital Asset Management,
“Technology is a key driver of global economic growth and is transforming a large part of the economy from analog to digital. Bitcoin is one of the enablers of this… and long-term exposure to Bitcoin offers a solution to investors to capture this macro trend.”
The launch comes after Japanese financial behemoth SBI Holdings Inc. floated the country’s first cryptocurrency fund to help investors diversify their portfolios in 2021. The country’s new crypto regulations saw Binance recently secure a new license to serve retail customers.
According to investment manager VanEck, exchange-traded funds, governments, and companies currently hold over $50 billion worth of Bitcoin. In the US, accredited investors access Bitcoin via futures ETFs from VanEck, ProShares, and others.
These products can be bought through brokers and are trusted by global advisers. In a portfolio split 60-40 between equities and bonds, a careful allocation of Bitcoin has the ability to improve returns while introducing minimal volatility.
What causes Bitcoin’s volatility? Find out here.
VanEck suggests that the price of Bitcoin will rise just before and after the next halving. The Bitcoin algorithm activates the halving mechanism roughly once every four years to reduce the number of Bitcoin awarded to successful miners.
US Investors Still Need to Wait
The US Securities and Exchange Commission (SEC) has delayed ruling on Bitcoin ETF applications from VanEck and other Wall Street firms. The agency demanded that several firms refile with agreements to share market surveillance with other firms.
Earlier this year, a court ordered the SEC to re-explain their decision-making process in refusing an application from Grayscale Investments to convert their Bitcoin Trust into an ETF. The court said the SEC’s refusal was “arbitrary and capricious.”
What is Bitcoin? Read our explainer on the oldest cryptocurrency here.
Analysts expect $100 billion inflows when US spot ETFs are approved.
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