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

Institutional investors are increasingly embracing digital assets, driven by improving sentiment and the emergence of new use cases, as revealed by a recent survey conducted by Nomura and its cryptocurrency arm, Laser Digital. The study, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive outlook on cryptocurrency over the next year, marking an increase from 25% in 2024. Meanwhile, negative sentiment has declined, indicating a gradual shift in perception as the asset class continues to mature. A key theme emerging from the study is the role of diversification, with 65% of respondents viewing cryptocurrency as a vital tool for portfolio diversification. Furthermore, 79% of those considering exposure to cryptocurrency plan to invest within the next three years, with most expecting to allocate between 2% and 5% of their portfolio, suggesting that institutions are still in the early stages of adoption. This shift is being supported by a changing regulatory landscape, with policymakers in Japan refining cryptocurrency frameworks over the past year, including discussions around classification, taxation, and investor protections. Globally, the introduction of clearer rules in major markets, alongside the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, has 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 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, while improving, has not fully disappeared. Nevertheless, the survey suggests that the conversation is shifting, with institutions increasingly focused on how to invest in cryptocurrency, rather than debating whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.