Survey Reveals 65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool

A new survey conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital, shows that institutional investors are increasingly embracing digital assets, driven by improving sentiment and expanding use cases. The study, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on cryptocurrency over the next year, up from 25% in 2024. Meanwhile, the number of respondents with negative sentiments has decreased, indicating a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents view cryptocurrency as a vital tool for portfolio diversification, with 79% of those considering investment planning to do so within the next three years. Most institutions expect to allocate between 2% and 5% of their portfolio to cryptocurrency, suggesting that they are still in the early stages of adoption. This shift is supported by a changing regulatory environment, with Japan's policymakers refining cryptocurrency frameworks over the past year. Globally, clearer regulations and the approval of cryptocurrency investment products, such as exchange-traded funds (ETFs) and tokenized assets, have reduced uncertainty and encouraged institutions to participate. As a result, interest in cryptocurrency is expanding beyond simple price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases, including treasury management and cross-border payments. However, barriers to adoption remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, the survey suggests that the conversation around cryptocurrency is shifting, with institutions increasingly focused on how to invest in digital assets, rather than whether to do so.