Survey Reveals 65% of Institutional Investors Consider Crypto a Key Portfolio Diversification Tool

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and an expanding range of use cases, according to a recent study by Tokyo-based bank Nomura and its digital assets arm, Laser Digital. The study, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive view of crypto over the next year, up from 25% in 2024. Meanwhile, the number of respondents with a negative outlook has declined, indicating a gradual shift in perception as the asset class matures. A key theme emerging from the study is the importance of diversification, with 65% of respondents viewing crypto as a vital tool for diversifying their 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 portfolio to digital assets, suggesting that institutions are still in the early stages of adoption. This shift is being supported by a changing regulatory landscape, with policymakers in Japan refining crypto frameworks over the past year, including discussions around classification, taxation, and investor protections. Globally, clearer rules in major markets, alongside the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously kept institutions on the sidelines. As a result, interest in digital assets is expanding beyond simple price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets, reflecting 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 around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, while improving, has not fully disappeared. Nevertheless, the survey suggests that the conversation around digital assets 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.