65% of Institutional Investors View Crypto as Crucial for Portfolio Diversification, Reveals Nomura Study

A new survey conducted by Nomura, a Tokyo-based bank, and its crypto subsidiary Laser Digital, indicates a significant shift in the attitude of institutional investors towards digital assets. The survey, which polled over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the upcoming year, marking an increase from 25% in 2024. Meanwhile, the number of respondents with negative sentiments has decreased, signifying a gradual change in perception as the asset class continues to mature. Diversification emerged as a key theme, with 65% of respondents considering crypto a vital component for portfolio diversification. Furthermore, 79% of those contemplating investment in crypto plan to do so within the next three years. However, most institutions anticipate allocating a modest portion of their portfolio to crypto, typically between 2% and 5%, indicating that they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape. In Japan, policymakers have been refining crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, coupled with the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. As a result, interest in crypto is expanding beyond mere price exposure. Over 60% of respondents expressed 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 popularity, with 63% of respondents identifying potential use cases ranging from treasury management to cross-border payments and investment in tokenized securities. Despite this, challenges persist. Concerns surrounding volatility, counterparty risk, and the lack of established valuation frameworks continue to hinder adoption. Regulatory uncertainty, although improving, has not been completely eradicated. Nevertheless, the survey suggests a shift in the conversation. Rather than debating the merits of investing in crypto, institutions are increasingly focused on how to invest in it, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.