Laser Digital, the digital asset-focused arm of Japan’s Nomura, has officially launched an Ethereum Adoption Fund tailored for institutional investors. The fund’s strategy involves investing in spot positions of Ethereum’s native cryptocurrency, ether, and enhancing returns by staking. As of Thursday, this initiative is part of the firm’s broader plan to back significant digital assets, positioning investors to gain from the growth of the Web3 economy.
The investment product aims to maintain daily liquidity while offering a staking yield of about 5.5%, as per Fiona King, head of distribution at Laser Digital Asset Management. It targets an array of investors, including pension funds, family offices, asset managers, and private banks. These entities are exploring allocations of 1% to 5% in the new ETH product. This development reflects increasing institutional interest in digital assets, as these entities seek diversified exposure to burgeoning sectors like Web3.
Expansion amid regulatory scrutiny
Nomura Laser Digital’s move comes at a pivotal moment for the crypto market. Ethereum’s price saw an increase of 7.5% over the past 24 hours, standing at approximately $2,020 at 10:15 am ET. This fund introduction follows the launch of a bitcoin-focused product in September, marking a strategic expansion into digital adoption investment solutions. Both the bitcoin and Ethereum offerings operate under the regulatory framework of the Cayman Islands, with Komainu—a collaboration between Nomura, Ledger, and CoinShares—safeguarding the assets.
Simultaneously, the U.S. Securities and Exchange Commission is deliberating on multiple ETF proposals that could hold ether directly. These considerations signify a potential shift in the regulatory landscape, affecting how institutional investors engage with digital assets.
In a landscape marked by regulatory uncertainties in jurisdictions like the UK and the US, Laser Digital has proactively diversified its presence. The company has secured a crypto license from Dubai’s virtual asset regulatory authority and recently inaugurated an office in Japan. Such moves underscore the firm’s commitment to navigating the complex regulatory environments across different regions.
Sebastien Guglietta, head of Laser Digital Asset Management, highlighted Ethereum’s significance in the transition to a digital economy. He emphasized the importance of long-term exposure to Ethereum to leverage the structural, technological trend that it represents.
Nomura Laser Digital is not alone in its pursuit to cater to institutional clients. Europe witnessed the listing of its first spot bitcoin ETF by Jacobi Asset Management on Euronext Amsterdam, suggesting a competitive landscape for digital asset investment solutions aimed at the institutional market. These developments indicate a maturing market where traditional financial entities and digital asset companies converge to meet the evolving demands of institutional investors.