65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool, Finds Nomura Study

Institutional investors are increasingly embracing digital assets, driven by improving sentiment and the emergence of new use cases, according to a recent study by Nomura and its cryptocurrency division, Laser Digital. The study, which collected 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, negative sentiment has decreased, indicating a gradual shift in perception as the asset class matures. A key theme is diversification, with 65% of respondents viewing cryptocurrency as a vital portfolio diversifier. Moreover, 79% of those considering investment plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio. This shift is supported by a changing regulatory landscape, with clearer rules in major markets and the expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets. As a result, interest is expanding beyond simple price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets. 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, challenges persist, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, the survey suggests that the conversation is shifting, with institutions now focused on how to invest in cryptocurrency, rather than whether to do so, indicating that digital assets are becoming an increasingly standard component of institutional portfolios.