65% of Institutional Investors View Crypto as a Crucial Portfolio Diversification Tool, Says Nomura Study

According to a new study by Nomura and its crypto division, Laser Digital, institutional investors are increasingly embracing digital assets, driven by improving sentiment and the emergence of new use cases. The survey, which collected responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the next year, up from 25% in 2024. Meanwhile, the percentage of respondents with negative sentiments has decreased, indicating a gradual shift in perception as the asset class matures. A key finding of the study is that 65% of respondents consider crypto to be a vital portfolio diversifier, with 79% of those planning to invest in crypto expecting to do so within the next three years. Most institutions anticipate allocating between 2% and 5% of their portfolios to crypto, suggesting that they are still in the early stages of adoption. The growing interest in crypto is supported by a changing regulatory landscape, with Japan's policymakers refining crypto frameworks over the past year, including discussions on classification, taxation, and investor protections. Globally, the introduction of clearer regulations in major markets, as well as the approval and expansion of crypto investment products such as ETFs and tokenized assets, has reduced some of the uncertainty that previously deterred institutions from investing in crypto. 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, despite the growing interest in crypto, barriers to adoption remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been completely eliminated. Nevertheless, the survey suggests that the conversation around crypto is shifting, with institutions increasingly focused on how to invest in digital assets rather than whether to do so, indicating that crypto is moving closer to becoming a standard component of institutional portfolios.