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

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the emergence of new use cases, according to a recent study by Nomura and its digital assets arm, Laser Digital. 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, up from 25% in 2024, while negative sentiment has decreased, indicating a gradual shift in perception as the asset class matures. A key theme to emerge is the importance of diversification, with 65% of respondents viewing crypto as a vital component of their portfolio diversification strategy, and 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 that they are still in the early stages of adoption. This shift is being driven by a changing regulatory landscape, with policymakers in Japan having spent the past year refining crypto frameworks, including discussions around classification, taxation, and investor protection. Globally, the introduction of clearer rules in major markets, alongside the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, has reduced some of the uncertainty that previously deterred institutions. 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 ranging from treasury management to 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 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.