Majority of Institutional Investors View Crypto as Essential for Portfolio Diversification

A new study conducted by Nomura and its cryptocurrency division, Laser Digital, indicates a growing acceptance of digital assets among institutional investors, with improving sentiment and expanding use cases driving adoption. 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, reflecting a gradual shift in perception as the asset class matures. A key finding is that 65% of respondents consider cryptocurrency a vital component of portfolio diversification, with 79% of those considering investment planning to do so within 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 environment, 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, along with the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced uncertainty, encouraging institutions to engage more deeply with digital assets. 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, including treasury management, cross-border payments, and investment in tokenized securities. While concerns around volatility, counterparty risk, and the lack of established valuation frameworks continue to hinder adoption, and regulatory uncertainty, although improving, has not been entirely eliminated, the survey suggests a shift in the conversation, from debating whether to invest in cryptocurrency to discussing how to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.