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

A new survey conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital, reveals that institutional investors are becoming increasingly receptive to digital assets. The study, 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 number of respondents with negative sentiments has decreased, indicating a gradual shift in perception as the asset class continues to mature. A key finding of the study is the importance of diversification, with 65% of respondents viewing cryptocurrency as a vital component of portfolio diversification. Furthermore, 79% of those considering investing in cryptocurrency plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio to cryptocurrency. This shift is being driven by a changing regulatory environment, with policymakers in Japan refining cryptocurrency frameworks over the past year. Globally, clearer regulations in major markets, as well as the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced uncertainty and encouraged 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. Additionally, stablecoins are gaining traction, with 63% of respondents identifying potential use cases such as treasury management, cross-border payments, and investment in tokenized securities. However, barriers to adoption still exist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, the survey suggests that the conversation around cryptocurrency is shifting, with institutions increasingly focused on how to invest in cryptocurrency rather than whether to do so, indicating that digital assets are becoming a more standard component of institutional portfolios.