Survey Reveals 65% of Institutional Investors Consider Crypto a Crucial 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 survey conducted by Nomura and its digital assets subsidiary, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of participants now hold a positive view of crypto's prospects over the next year, up from 25% in 2024. Meanwhile, the proportion of respondents expressing negative sentiment has decreased, suggesting 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 crypto as a means of diversifying their portfolios, and 79% of those considering investment planning to do so within the next three years. Most institutions expect to allocate a modest portion of their portfolios to crypto, typically between 2% and 5%, indicating that they are still in the early stages of adoption. This shift is being supported by a changing regulatory landscape. In Japan, policymakers have been refining crypto frameworks over the past year, including discussions around classification, taxation, and investor protection. Globally, the introduction of clearer rules in major markets, alongside the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, has reduced some of the uncertainty that previously deterred institutions from participating. 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, 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 around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, while improving, has not been fully eliminated. Nevertheless, 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.