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

A new study by Nomura and its digital asset arm, Laser Digital, indicates that institutional investors are increasingly embracing digital assets, driven by improving sentiment and the emergence of new use cases. The survey of over 500 Japanese investment professionals found a 31% positive outlook on crypto for the next year, up from 25% in 2024, while negative views have decreased, signaling a gradual shift in perception as the asset class evolves. Diversification is a key theme, with 65% of respondents viewing crypto as a vital portfolio diversifier and 79% of those considering investment planning to do so within three years, typically allocating between 2% and 5% of their portfolio. This shift is supported by a more defined regulatory landscape, with clearer rules in major markets and the expansion of crypto investment products. As a result, interest in crypto is expanding beyond price exposure, with over 60% of respondents expressing interest in staking, lending, and tokenized assets, reflecting a growing demand for yield-generating strategies. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases. However, concerns around volatility and regulatory uncertainty persist. Nevertheless, the survey indicates that the conversation among institutions is shifting from whether to invest in crypto to how to do so, suggesting digital assets are becoming a more integral part of institutional portfolios.