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 the emergence of new use cases, according to a recent survey conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital. 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. Meanwhile, the percentage of respondents with negative sentiments has decreased, indicating a gradual shift in perception as the asset class matures. A key finding of the survey is the importance of diversification, with 65% of respondents viewing cryptocurrency as a means of diversifying their portfolios. Furthermore, 79% of those considering investing in cryptocurrency plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio to cryptocurrency. This shift is being supported by changes in the regulatory environment, with policymakers in Japan refining cryptocurrency frameworks over the past year. Globally, the introduction of clearer rules and regulations, as well as 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 institutional investors. As a result, interest in cryptocurrency is expanding beyond simple price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets. This reflects 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 such as treasury management, cross-border payments, and investment in tokenized securities. However, barriers to adoption still exist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. While regulatory uncertainty is improving, it has not been fully eliminated. Nevertheless, the survey suggests that the conversation around cryptocurrency is shifting, with institutions increasingly focused on how to invest in cryptocurrency rather than whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.