Majority of Institutional Investors View Crypto as Key to Portfolio Diversification
A new study conducted by Nomura and its crypto-focused arm, Laser Digital, indicates a growing acceptance of digital assets among institutional investors. The survey, 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, representing a 6% increase from 2024. Meanwhile, the number of respondents with negative views has decreased, suggesting a gradual shift in perception as the asset class continues to mature. The study highlights diversification as a primary driver, with 65% of respondents considering crypto a vital component of portfolio diversification. Approximately 79% of those contemplating investment plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio to crypto. This shift is supported by evolving regulatory frameworks and policies. In Japan, policymakers have been refining crypto regulations over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer rules and the expansion of crypto investment products, such as ETFs and tokenized assets, have reduced uncertainty and encouraged institutional engagement. As a result, interest in crypto extends beyond mere price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets. Stablecoins are also gaining popularity, with 63% of respondents identifying potential use cases, including treasury management and cross-border payments. While concerns about volatility, counterparty risk, and valuation frameworks persist, the survey suggests a shift in focus from whether to invest in crypto to how to do so, indicating that digital assets are becoming an increasingly standard component of institutional portfolios.