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

A new survey conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital, reveals a significant improvement in the sentiment of institutional investors towards digital assets. The study, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on cryptocurrency for the upcoming year, marking a 6% increase from 2024. Conversely, negative sentiment has decreased, signifying a gradual shift in perception as the asset class continues to mature. A key finding is that 65% of respondents view cryptocurrency as a vital tool for diversifying their portfolios, with 79% of those considering investment planning to do so within the next three years. Most institutions anticipate allocating between 2% and 5% of their portfolio to cryptocurrency, 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, coupled with the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced uncertainty and encouraged institutional engagement. As a result, interest in cryptocurrency extends 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, including treasury management, cross-border payments, and investment in tokenized securities. Despite the progress, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, remains a factor. Nevertheless, the survey indicates a shift in the conversation, with institutions now focusing on how to invest in cryptocurrency rather than whether to do so, suggesting that digital assets are becoming increasingly integrated into institutional portfolios.