Study Reveals 65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool

The adoption of digital assets is gaining momentum among institutional investors, driven by improving sentiment and the emergence of new use cases, according to a recent survey conducted by Nomura and its crypto division, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive view of crypto for the next year, up from 25% in 2024. Meanwhile, the number of respondents with a negative outlook has decreased, indicating a gradual shift in perception as the asset class continues to mature. Diversification is a key theme, with 65% of respondents viewing crypto as a means to diversify their portfolios, and 79% of those considering investment planning to do so within the next three years. Most institutions anticipate allocating a modest portion of their portfolio to crypto, typically between 2% and 5%, suggesting that they are still in the early stages of adoption. This shift is supported by changes in the regulatory and policy landscape. In Japan, policymakers have spent the past year refining crypto frameworks, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, along with the approval and expansion of crypto investment products such as ETFs and tokenized assets, have reduced some of the uncertainty that previously deterred institutions from investing. As a result, interest in crypto is expanding beyond simple price exposure. Over 60% of respondents expressed 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 investments in tokenized securities. However, barriers to adoption still exist. Concerns over volatility, counterparty risk, and the lack of established valuation frameworks continue to weigh on investment decisions. While regulatory uncertainty is improving, it has not been completely eliminated. Despite these challenges, the survey suggests that the conversation around crypto is shifting. Instead of debating whether to invest in crypto, institutions are increasingly focused on how to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.