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

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 conducted by Nomura, a Tokyo-based bank, and its digital asset 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 coming year, up from 25% in 2024. Meanwhile, the decline in negative sentiment suggests a gradual shift in perception as the asset class continues to mature. A key finding is that 65% of respondents view crypto as a vital portfolio diversifier, 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 policymakers in Japan refining crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, along with the approval and expansion of crypto investment products like ETFs and tokenized assets, have reduced uncertainty, encouraging institutions to participate. 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, 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. Despite lingering concerns over volatility, counterparty risk, and the lack of established valuation frameworks, the survey indicates a shift in the conversation from whether to invest in crypto to how to do so, suggesting digital assets are moving closer to becoming a standard component of institutional investment portfolios.