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

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 survey conducted by Nomura and its digital assets subsidiary, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive outlook on crypto for the next year, representing a 6% increase from 2024. Meanwhile, the decline in negative sentiment suggests 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 crypto as a vital portfolio diversifier. Of those considering investment, 79% plan to allocate funds within the next three years, with most expecting to assign between 2% and 5% of their portfolio to crypto, 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 crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, combined with the approval and expansion of crypto investment products such as ETFs and tokenized assets, have reduced uncertainty and encouraged institutions to participate. 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, including 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. Regulatory uncertainty, although improving, still exists. Nevertheless, the survey indicates a shift in the conversation, with institutions increasingly focused on how to invest in crypto, rather than whether to do so, suggesting that digital assets are becoming a more standard component of institutional portfolios.