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, shows that institutional investors are becoming increasingly receptive to digital assets. The survey, which gathered responses from over 500 investment professionals in Japan, highlights improving sentiment and the emergence of broader use cases as key drivers of adoption. The study found that 31% of respondents now have a positive outlook on cryptocurrency over the next year, representing a 6% increase from 2024. Conversely, negative sentiment has decreased, indicating a gradual shift in perception as the asset class continues to mature. A key finding is that 65% of respondents view cryptocurrency as a vital tool for 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 portfolios to cryptocurrency, suggesting that they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape. In Japan, policymakers have spent the past year refining cryptocurrency frameworks, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, alongside the approval and expansion of cryptocurrency 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 cryptocurrency is expanding beyond simple price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets. This reflects 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 ranging from treasury management to cross-border payments and investment in tokenized securities. However, barriers to adoption still exist, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been completely eliminated. Nevertheless, the survey suggests that the conversation is shifting, with institutions increasingly focused on how to invest in cryptocurrency rather than whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.