New Study Reveals 65% of Institutional Investors Consider Crypto Crucial for Portfolio Diversification
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 study by Nomura and its digital asset subsidiary, Laser Digital. The survey, which collected responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive view of crypto's prospects over the next year, up from 25% in 2024. Meanwhile, negative sentiment has decreased, indicating a gradual shift in perception as the asset class continues to mature. A key theme emerging from the study is the role of crypto in diversifying investment portfolios, with 65% of respondents viewing it as a vital component. Furthermore, 79% of those considering investing in crypto plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio to digital assets. This shift is being supported by a changing regulatory environment, with clearer rules and guidelines in major markets, as well as the approval and expansion of crypto investment products such as ETFs and tokenized assets. 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. 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. Despite the progress, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. 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 investment portfolios.