A growing number of institutional investors are embracing digital assets, driven by increasing optimism and expanding use cases, according to a recent study by Nomura and its digital assets arm, Laser Digital. The survey, which gathered insights 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 matures. A key theme emerging from the study is the role of crypto in portfolio diversification, with 65% of respondents viewing it as a vital tool for this purpose, and 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 they are still in the early stages of adoption. This shift is supported by evolving regulatory frameworks, with Japan having refined its crypto policies over the past year, 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 ETFs and tokenized assets, have reduced uncertainty, encouraging institutions to engage more deeply with digital assets. 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 management. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases ranging from treasury management to cross-border payments and investments in tokenized securities. However, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks, as well as regulatory uncertainty.
Despite these challenges, the survey indicates a shift in the conversation, with institutions moving from debating whether to invest in crypto to discussing how to do so, signaling that digital assets are becoming an increasingly standard component of institutional investment portfolios.