Survey Reveals 65% of Institutional Investors View Crypto as Crucial for Portfolio Diversification

A new survey conducted by Nomura and its digital assets division, Laser Digital, shows that institutional investors are becoming more receptive to digital assets, driven by 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, up from 25% in 2024, while negative sentiment has decreased, indicating a gradual shift in perception as the asset class continues to mature. A key finding is that 65% of respondents consider crypto to be a vital component for diversifying 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 portfolio to crypto, suggesting that they are still in the early stages of adoption. This shift is supported by a changing regulatory environment, with Japan's policymakers having refined crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, as well as the approval and expansion of crypto investment products such as ETFs and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. 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, reflecting a growing demand for yield-generating strategies and more complex 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. However, barriers to adoption remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Despite this, 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 portfolios.