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 an expanding range of use cases, according to a recent survey conducted by Nomura, a Tokyo-based bank, and its crypto subsidiary, 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 crypto for the upcoming 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 continues to mature. A key finding is that 65% of respondents view crypto as a vital tool for diversifying their portfolios, with 79% of those considering investing in crypto planning to do so within the next three years. Most institutions expect to allocate a modest portion of their portfolio to crypto, typically between 2% and 5%, suggesting that they are still in the early stages of adoption. This shift is being supported by a changing regulatory environment. In Japan, policymakers have spent the past year refining crypto frameworks, including discussions around classification, taxation, and investor protection. Globally, clearer regulations in major markets, along with the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously kept institutions on the sidelines. As a result, interest in crypto is expanding beyond simple price exposure. Over 60% of respondents expressed 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 still exist. Concerns around volatility, counterparty risk, and the lack of established valuation frameworks continue to weigh on institutions. Regulatory uncertainty, while improving, has not been fully eliminated. Nevertheless, the survey suggests that the conversation around crypto is shifting. Instead of debating whether to invest in crypto, institutions are increasingly focused on how to invest in it, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.