Survey Reveals 65% of Institutional Investors View Crypto as Crucial for Portfolio Diversification

A new survey conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital, reveals that institutional investors are increasingly embracing digital assets, driven by improving sentiment and expanding use cases. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a favorable outlook on cryptocurrency over the next year, up from 25% in 2024. Meanwhile, negative sentiment has decreased, suggesting a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents view cryptocurrency as a vital portfolio diversifier, with 79% of those considering investment planning to do so within three years. Most institutions expect to allocate between 2% and 5% of their portfolio to cryptocurrency, indicating that they are still in the early stages of adoption. This shift is supported by a changing regulatory environment, with policymakers in Japan refining cryptocurrency frameworks over the past year. Globally, clearer regulations and the approval of cryptocurrency investment products, such as exchange-traded funds (ETFs) and tokenized assets, have reduced uncertainty and encouraged institutional investment. 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. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases, including treasury management, cross-border payments, and investment in tokenized securities. However, barriers to adoption remain, 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.