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

According to a new study by Nomura and its cryptocurrency division, Laser Digital, institutional investors are increasingly embracing digital assets, driven by improving sentiment and the emergence of new use cases. The study, which gathered responses from over 500 Japanese investment professionals, found that 31% of respondents now have a positive outlook on cryptocurrency over the next year, representing a 6% increase from 2024. Meanwhile, negative sentiment has decreased, indicating a gradual shift in perception as the asset class continues to mature. A key theme emerging from the study is the role of diversification, with 65% of respondents viewing cryptocurrency as a vital portfolio diversifier. Of those considering investment, 79% plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio to cryptocurrency. This shift is supported by a changing regulatory landscape, with Japan having refined its cryptocurrency frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, the introduction of clearer rules and the approval of cryptocurrency investment products, such as exchange-traded funds and tokenized assets, have reduced uncertainty and encouraged institutional investment. As a result, interest in cryptocurrency 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, 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. 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.