65% of Institutional Investors View Cryptocurrency as Crucial for Portfolio Diversification

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the emergence of new use cases, according to a recent study by Nomura and its cryptocurrency division, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on cryptocurrency for the next year, up from 25% in 2024. Meanwhile, negative sentiment has decreased, indicating a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents consider cryptocurrency a vital portfolio diversifier, while 79% of those considering investment plan to do so within three years. Most institutions expect to allocate between 2% and 5% of their portfolio to cryptocurrency, suggesting they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with policymakers in Japan 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 institutional investment. 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. Despite remaining barriers, such as volatility and regulatory uncertainty, the survey suggests that institutions are increasingly focused on how to invest in cryptocurrency, rather than whether to do so, indicating that digital assets are becoming a more standard component of institutional portfolios.