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 arm, 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 upcoming year, marking an increase from 25% in 2024. Meanwhile, the decline in negative sentiment suggests a gradual shift in perception as the asset class continues to mature. A key theme emerging from the study is the role of diversification, with 65% of respondents viewing crypto as a vital component of portfolio diversification. Furthermore, 79% of those considering investment in crypto plan to do so within the next three years, with most expecting to allocate between 2% and 5% of their portfolio, indicating that institutions are still in the early stages of adoption. This shift is supported by evolving regulatory and policy frameworks. In Japan, policymakers have spent the past year refining crypto regulations, including discussions on classification, taxation, and investor protection. Globally, clearer rules in major markets, coupled with the approval and expansion of crypto investment products such as exchange-traded funds (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 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 investment in tokenized securities. However, barriers to adoption remain, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been entirely eliminated. Nevertheless, the survey indicates a shift in the conversation, with institutions increasingly focused on how to invest in crypto rather than whether to do so, suggesting that digital assets are moving closer to becoming a standard component of institutional portfolios.