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

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 survey conducted by Nomura and its cryptocurrency division, Laser Digital. The survey, which collected 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 percentage of respondents with a negative outlook has decreased, indicating a gradual shift in perception as the asset class becomes more established. A key finding of the study is the importance of diversification, with 65% of respondents viewing cryptocurrency as a means of diversifying their portfolios. Furthermore, 79% of those considering investing in cryptocurrency plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolios to digital assets. This shift is being supported by a changing regulatory environment, with policymakers in Japan refining their frameworks for cryptocurrency over the past year, including discussions around classification, taxation, and investor protection. Globally, the introduction of clearer rules and the approval of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets have reduced some of the uncertainty that previously deterred institutions from investing. 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, 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 such as treasury management, cross-border payments, and investment in tokenized securities. However, barriers to adoption still exist, including concerns around 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, indicating that cryptocurrency is moving closer to becoming a standard component of institutional portfolios.