Japan’s Largest Investment Bank Introduces Bitcoin Credit Fund

Nomura, Japan’s largest investment bank, announced that its subsidiary Laser Digital Asset Management has introduced a Bitcoin Credit Fund aimed at providing institutional investors with direct exposure to Bitcoin.

The move is aimed at institutional investors, and is part of a larger plan by Nomura, which positions the fund as “the first in a range of certified digital investment solutions that the company plans to offer.”

The Bitcoin Trust Fund offers “long-only exposure to Bitcoin (BTC)” and is part of the separate wallet company Digital Laser Funds. Interestingly, it is registered as a mutual fund under the Cayman Islands regulatory authority. To ensure orderly custody, Nomura chose Komainu as its partner.

Sebastian Guglietta, Head of Laser Digital Asset Management, expressed the bank’s long-term view, saying: “Bitcoin is one of the enablers of this long-term transformative change, and long-term exposure to Bitcoin provides a solution for investors to capitalize on this changing macro trend.”

Nomura’s involvement in the digital assets ecosystem is not new. In September 2022, the bank launched a venture capital arm for digital assets, signaling its intention to remain at the “edge of digital innovation.” In addition to its awards, Laser Digital has been licensed by the Dubai Virtual Assets Regulatory Authority (VARA) to operate in the UAE as of August this year.

The timing of the launch goes hand in hand with increasing conversations about regulated Bitcoin investment products, not only in Japan but around the world.

For example, the US Securities and Exchange Commission recently approved two exchange-traded funds based on Bitcoin futures contracts. Additionally, both Canada and Europe have given reference to several Bitcoin-focused investment products in recent years.

Nomura’s Bitcoin Adoption Fund is a noteworthy development in the space of institutional cryptocurrency investments, especially for a traditional financial powerhouse. It highlights the growing acceptance and potential normalization of digital assets within mainstream financial institutions.