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

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the emergence of new use cases, according to a recent study by Nomura and its digital asset arm, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, reveals 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, indicating a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents consider crypto a vital portfolio diversifier, with 79% of those considering investment planning to do so within the next three years. Most institutions expect to allocate between 2% and 5% of their portfolios to crypto, suggesting they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with Japan refining its crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer rules in major markets, along with the approval and expansion of crypto investment products such as ETFs and tokenized assets, have reduced uncertainty and encouraged institutions to engage more deeply with digital assets. 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 such as treasury management, cross-border payments, and investment in tokenized securities. However, barriers to adoption remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, 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.