A new study conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital, reveals that institutional investors are increasingly embracing digital assets. The study, which surveyed over 500 investment professionals in Japan, found a notable improvement in sentiment, with 31% of respondents now holding a positive outlook on cryptocurrency over the next year, up from 25% in 2024. Meanwhile, the number of respondents with negative views has decreased, suggesting a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents view cryptocurrency as a vital means of diversifying their portfolios, 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 cryptocurrency, indicating that they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with policymakers in Japan refining cryptocurrency 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 cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced uncertainty and encouraged institutional investment.
As a result, interest in cryptocurrency 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, including treasury management, cross-border payments, and investment in tokenized securities. However, challenges remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been fully eliminated.
Nonetheless, the survey suggests that the conversation around cryptocurrency is shifting, with institutions increasingly focused on how to invest in digital assets, rather than whether to do so, indicating that cryptocurrency is moving closer to becoming a standard component of institutional portfolios.