Hot money is about to enter the market? Nomura survey: 65% of institutions see cryptocurrencies as a "diversification tool"

As the global asset allocation logic gradually shifts, cryptocurrencies are also moving from the “marginal asset” to mainstream investment tools. Japan’s largest securities firm, Nomura Holdings, and its digital asset subsidiary Laser Digital jointly released a study showing that as market sentiment warms and application scenarios continue to emerge, institutional investors’ attitudes toward digital assets are turning more positive, with 65% of respondents already viewing cryptocurrencies as a tool for portfolio diversification. This survey of over 500 Japanese investment professionals indicates that as many as 31% of respondents are optimistic about the cryptocurrency market’s outlook over the next year, a significant increase from 25% in 2024. Meanwhile, pessimistic market sentiment is also cooling, suggesting that as crypto assets mature, investors’ stereotypes are quietly breaking down. The report highlights a core trend: diversifying investment portfolio risks. The study shows that up to 65% of institutional investors see cryptocurrencies as an important tool for diversified asset allocation; more notably, among those who have not yet allocated but are considering investing in cryptocurrencies, 79% plan to enter the market within the next three years. However, institutional funds remain cautious, with most expecting to keep their crypto allocation between 2% and 5%, indicating that this wave of institutional market entry is still in its early stages. The shift in institutional attitude is largely attributed to the gradually clearer global regulatory environment. For example, in Japan, authorities have actively improved the cryptocurrency regulatory framework over the past year, engaging in in-depth discussions on asset classification, tax reforms, and investor protection. Internationally, regulatory rules in major markets are becoming increasingly clear, coupled with the listing and popularization of spot ETFs for Bitcoin and Ethereum, and the booming development of real-world asset (RWA) tokenization, significantly reducing the “uncertainty” that previously deterred institutions. Notably, institutional interest is no longer limited to simply “buy low and sell high” for profit. Over 60% of respondents show strong interest in staking, lending, crypto derivatives, and tokenized assets. This reflects a desire among institutions for strategies that generate stable income and a willingness to build more complex, advanced investment portfolios. Meanwhile, stablecoins are increasingly favored by institutional investors. 63% of institutions are optimistic about the development potential of stablecoins, with potential applications including fund management, cross-border payments, and tokenized securities investments. Despite the optimistic outlook, challenges remain. The high volatility of crypto assets, counterparty risks, and the lack of an established, universally accepted valuation model continue to be obstacles for some institutions to fully enter the market. Additionally, while regulatory uncertainty is easing, it has not completely disappeared.