Survey Reveals 65% of Institutional Investors Consider Crypto a Crucial Portfolio Diversification Tool

A new study conducted by Nomura, a Tokyo-based bank, and its cryptocurrency arm, Laser Digital, reveals that institutional investors are increasingly embracing digital assets. 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, up from 25% in 2024. Meanwhile, the number of respondents with a negative outlook on crypto has decreased, signifying a gradual shift in perception as the asset class continues to mature. The theme of diversification emerges as a key factor, with 65% of respondents viewing crypto as a vital component of portfolio diversification. 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, indicating that institutions are still in the early stages of adoption. The shift towards crypto adoption is supported by a changing regulatory landscape. In Japan, policymakers have spent the past year refining crypto frameworks, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, alongside 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 from investing in crypto. 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 around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been completely eliminated. Nevertheless, the survey suggests that the conversation around crypto is shifting, with institutions increasingly focused on how to invest in crypto rather than whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.