65% of Institutional Investors Consider Cryptocurrency a Key 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 study conducted by Nomura and its digital asset 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 cryptocurrency over the next year, representing a 6% increase from 2024. Meanwhile, the number of respondents expressing negative sentiment has decreased, indicating 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 cryptocurrency as a vital component of their investment portfolios. Furthermore, 79% of those considering investing in cryptocurrency plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolios to digital assets. This shift is being supported by a changing regulatory landscape, with policymakers in Japan refining their cryptocurrency frameworks over the past year. Globally, the introduction of clearer rules and regulations in major markets, alongside the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, has reduced some of the uncertainty that previously deterred institutions from investing in digital assets. As a result, interest in cryptocurrency is expanding beyond simple price exposure, with over 60% of respondents expressing interest in more sophisticated investment strategies such as staking, lending, derivatives, and tokenized assets. 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. Despite these challenges, the survey suggests that the conversation around cryptocurrency is shifting, with institutions increasingly focused on how to invest in digital assets rather than whether to do so, indicating that cryptocurrency is moving closer to becoming a standard component of institutional portfolios.