Majority of Institutional Investors View Crypto as Essential for Portfolio Diversification: Nomura Study

A new study by Nomura and its cryptocurrency division, Laser Digital, indicates that institutional investors are increasingly embracing digital assets, with improving sentiment and expanding use cases driving adoption. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on cryptocurrency over the next year, up from 25% in 2024. Meanwhile, the decline in negative sentiment suggests a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents consider cryptocurrency a vital portfolio diversifier, with 79% of those considering investment planning to do so within three years. Most expect to allocate between 2% and 5% of their portfolio to cryptocurrency, 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 cryptocurrency frameworks over the past year. Globally, clearer rules and the approval of cryptocurrency investment products have reduced uncertainty, encouraging institutions to invest. 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. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases. However, concerns around volatility, counterparty risk, and valuation frameworks continue to hinder adoption. Despite these challenges, the survey suggests that the conversation around cryptocurrency is shifting, with institutions increasingly focused on how to invest in digital assets, indicating that they are moving closer to becoming a standard component of institutional portfolios.