Majority of Institutional Investors Now View Crypto as Key to Portfolio Diversification

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the expanding range of use cases, according to a new study by Nomura and its crypto subsidiary, Laser Digital. The survey, which polled 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, while negative sentiment has decreased, indicating a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents consider crypto a vital portfolio diversifier, with 79% of those considering investment planning to do so within the next three years. Most institutions anticipate allocating between 2% and 5% of their portfolio to crypto, suggesting they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with policymakers in Japan refining crypto frameworks over the past year, 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 ETFs and tokenized assets, have reduced uncertainty, drawing institutions in. As a result, interest in crypto 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, including treasury management, cross-border payments, and investment in tokenized securities. Despite remaining barriers such as volatility, counterparty risk, and the lack of established valuation frameworks, the survey indicates a shift in the conversation, with institutions now focusing on how to invest in crypto, rather than whether to do so, suggesting digital assets are becoming a more standard component of institutional portfolios.