65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool, Nomura Study Reveals

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 survey by Nomura and its crypto-focused subsidiary, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive outlook on crypto for the upcoming year, marking an increase from 25% in 2024. Meanwhile, negative sentiment has declined, suggesting a gradual shift in perception as the asset class continues to mature. A key theme emerging from the study is the role of diversification, with 65% of respondents viewing crypto as a vital portfolio diversifier. Furthermore, 79% of those considering exposure to crypto plan to invest within the next three years, with most expecting to allocate between 2% and 5% of their portfolio, indicating that institutions are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with policymakers in Japan refining crypto frameworks over the past year, including discussions around classification, taxation, and investor protections. Globally, clearer rules in major markets, alongside the approval and expansion of crypto investment products such as ETFs and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. 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 sophisticated portfolio construction. Additionally, stablecoins are 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 persist, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been fully alleviated. Nevertheless, the survey suggests that the conversation around crypto is shifting, with institutions increasingly focused on how to invest in digital assets, rather than debating whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.