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

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the emergence of new use cases, as found in a recent survey conducted by Nomura and its cryptocurrency arm, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, indicates that 31% of respondents now have a positive outlook on crypto for the next year, up from 25% in 2024. Meanwhile, negative sentiment has decreased, suggesting a gradual shift in perception as the asset class matures. A key theme emerging from the study is the role of diversification, with 65% of respondents viewing crypto as a vital portfolio diversifier, and 79% of those considering investment planning to do so within the next three years. Most institutions anticipate modest allocations, typically between 2% and 5%, indicating that they are still in the early stages of adoption. This shift is supported by a changing regulatory environment, 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 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 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 still exist, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been completely eliminated. Nevertheless, 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.