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 cryptocurrency arm, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive view of crypto for the upcoming year, up from 25% in 2024. Meanwhile, the decline in negative sentiment suggests a gradual shift in perception as the asset class matures. 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 the next three years. Most expect to allocate 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 and the approval of crypto investment products such as ETFs and tokenized assets have reduced uncertainty, encouraging 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 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 is shifting, with institutions increasingly focused on how to invest in crypto, rather than whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.