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

A new study by Nomura and its cryptocurrency arm, Laser Digital, indicates a growing acceptance of digital assets among institutional investors, driven by improving sentiment and an expanding range of use cases. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on cryptocurrency over the next year, up from 25% in 2024, while negative sentiment has decreased, suggesting a gradual shift in perception as the asset class matures. The key theme emerging from the study is the role of diversification, with 65% of respondents viewing cryptocurrency as a vital component for portfolio diversification, and 79% of those considering investment planning to do so within the next three years. Most institutions anticipate modest allocations, typically between 2% and 5%, indicating they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with policymakers in Japan refining cryptocurrency frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, alongside the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. As a result, interest 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 ranging from treasury management to 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. Regulatory uncertainty, although improving, has not been completely eliminated. Nevertheless, the survey indicates a shift in the conversation, with institutions increasingly focused on how to invest in cryptocurrency rather than whether to do so, suggesting that digital assets are moving closer to becoming a standard component of institutional portfolios.