65% of Institutional Investors View Crypto as Key to Portfolio Diversification, Finds Nomura Study

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 study by Nomura and its digital asset arm, Laser Digital. 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. Meanwhile, negative sentiment has decreased, indicating a gradual shift in perception as the asset class matures. A key theme is diversification, with 65% of respondents viewing crypto as a vital portfolio diversifier, and 79% of those considering investment planning to do so within three years. Most institutions expect to allocate between 2% and 5% of their portfolio to crypto, suggesting they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape, with policymakers in Japan 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 participate. 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. While concerns around volatility, counterparty risk, and valuation frameworks remain, 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.