Survey Reveals 65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool
According to a new survey conducted by Nomura and its digital assets arm, Laser Digital, institutional investors are increasingly embracing digital assets due to improving sentiment and the emergence of new use cases. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the next year, marking an increase from 25% in 2024. Meanwhile, the percentage of respondents with a negative outlook has decreased, signifying a gradual shift in perception as the asset class continues to mature. A key finding is that 65% of respondents view crypto as a vital diversification tool for 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 portfolios to crypto, indicating that they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with Japan having refined its crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, the introduction of clearer rules in major markets, alongside the approval and expansion of crypto investment products such as ETFs and tokenized assets, has reduced some of the uncertainty that previously deterred institutional investment. 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. 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. Despite this, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. While regulatory uncertainty is improving, it has not been completely alleviated. Nonetheless, the survey suggests a shift in the conversation, with institutions now focusing on how to invest in crypto rather than whether to do so, indicating that digital assets are becoming an increasingly standard component of institutional portfolios.