Survey Reveals 65% of Institutional Investors View Crypto as Crucial for Portfolio Diversification

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 digital asset subsidiary, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the next year, up from 25% in 2024. Meanwhile, the number of respondents with a negative outlook has decreased, indicating a gradual shift in perception as the asset class matures. A key finding of the survey is the importance of diversification, with 65% of respondents viewing crypto as a vital component of their investment portfolios. Furthermore, 79% of those considering investing in crypto 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 supported by a changing regulatory environment, with policymakers in Japan refining crypto frameworks and clearer rules being established in major global markets. The expansion of crypto investment products, such as exchange-traded funds (ETFs) and tokenized assets, has also reduced uncertainty and encouraged institutions to invest. 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. 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, challenges persist, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, the survey suggests that the conversation around crypto is shifting, with institutions increasingly focused on how to invest in digital assets, rather than whether to do so, indicating that crypto is moving closer to becoming a standard component of institutional portfolios.