65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool, According to Nomura Study

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the emergence of new use cases, as indicated by a recent survey from Nomura and its crypto subsidiary Laser Digital. The study, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the upcoming year, representing a 6% increase from 2024. Conversely, negative sentiment has decreased, signaling a gradual shift in perception as the asset class continues to mature. A key theme that emerged was diversification, with 65% of respondents viewing crypto as a vital portfolio diversifier. Furthermore, 79% of those considering investing in crypto plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio, indicating that institutions are still in the early stages of adoption. This shift is supported by evolving regulatory and policy frameworks. In Japan, policymakers have spent the past year refining crypto regulations, including discussions on classification, taxation, and investor protection. Globally, clearer rules in major markets, combined with the approval and expansion of crypto investment products such as ETFs and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. As a result, interest is expanding beyond simple price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets, reflecting a growing demand for yield-generating strategies and more sophisticated portfolio construction. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases ranging from treasury management to cross-border payments and investment in tokenized securities. However, barriers to adoption remain, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been fully eliminated. Nevertheless, the survey suggests that the conversation is shifting, with institutions increasingly focused on how to invest in crypto, rather than whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.