Survey Finds 65% of Institutional Investors Consider Crypto a Key Portfolio Diversification Tool

A new survey conducted by Nomura and its cryptocurrency arm, Laser Digital, indicates a growing acceptance of digital assets among institutional investors, driven by improving sentiment and the emergence of new 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, while negative sentiment has decreased. This shift in perception suggests that the asset class is maturing. A key finding is that 65% of respondents view cryptocurrency as a vital tool for diversifying their portfolios, with 79% of those considering investment planning to do so within the next three years. However, most institutions expect to allocate only a modest portion of their portfolio to cryptocurrency, typically between 2% and 5%, indicating that they are still in the early stages of adoption. This growing interest in cryptocurrency is supported by a changing regulatory environment. In Japan, policymakers have been refining cryptocurrency frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, combined with the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. As a result, institutions are looking 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 popularity, with 63% of respondents identifying potential use cases such as treasury management, cross-border payments, and investment in tokenized securities. However, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. While regulatory uncertainty is improving, it has not been completely eliminated. Nevertheless, the survey suggests that the conversation around cryptocurrency is shifting, with institutions now focusing 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.