65% of Institutional Investors View Crypto as Crucial for Portfolio Diversification, Reveals Nomura Study

There is a growing acceptance of digital assets among institutional investors, driven by improving sentiment and the emergence of new use cases, according to a recent study by Nomura and its digital asset arm, Laser Digital. The study, which gathered 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 decline in negative sentiment suggests a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents see crypto as a vital diversifier for their portfolios, 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, indicating they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with Japan refining its crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, along with the approval of crypto investment products like ETFs and tokenized assets, have reduced uncertainty, encouraging institutions to participate. As a result, interest in crypto is expanding beyond mere 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 complex 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, barriers to adoption remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, the survey indicates that the conversation around crypto is shifting from whether to invest to how to invest, suggesting that digital assets are moving closer to becoming a standard component of institutional investment portfolios.