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

A growing number of institutional investors are embracing digital assets, driven by improving sentiment and expanding use cases, according to a recent survey by Nomura and its crypto subsidiary Laser Digital. The study, 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. This shift in perception can be attributed to the maturation of the asset class. A key finding is that 65% of respondents consider crypto a vital portfolio diversifier, with 79% of those considering investment planning to do so within three years. Most institutions anticipate allocating between 2% and 5% of their portfolio to crypto, indicating they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with Japan's policymakers refining crypto frameworks over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer regulations and the approval of crypto investment products such as ETFs and tokenized assets have reduced uncertainty, encouraging institutions to invest. 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 such as 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 these challenges, the survey suggests that institutions are shifting their focus from whether to invest in crypto to how to do so, indicating that digital assets are becoming a more standard component of institutional portfolios.