Survey Reveals 65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool

A new survey conducted by Nomura, a Tokyo-based bank, and its crypto subsidiary Laser Digital, has found that institutional investors are increasingly embracing digital assets. The survey, which gathered responses from over 500 investment professionals in Japan, discovered that 31% of respondents now have a positive outlook on crypto for the next year, marking an increase from 25% in 2024. Meanwhile, the percentage of respondents with a negative outlook has decreased, signifying a gradual shift in perception as the asset class matures. A key finding of the study is the importance of diversification, with 65% of respondents viewing crypto as a means to diversify their portfolios, 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 portfolios to crypto, indicating that they are still in the initial stages of adoption. This shift towards crypto is being supported by a changing regulatory landscape. In Japan, policymakers have been refining crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, combined with the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions from investing in crypto. 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. This reflects a growing demand for yield-generating strategies and more sophisticated 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 still exist, including concerns over 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.