Is the crypto hot money coming? Nomura: Nearly 80% of institutions are considering entering within three years, and 65% see it as a diversified tool

Nomura Holdings Research says that cryptocurrencies are becoming a mainstream investment tool, with 65% of institutional investors viewing them as the preferred choice for diversification allocation.

As global asset allocation logic continues to shift, cryptocurrencies are also moving from “marginal assets” to mainstream investment tools. A study jointly released by Japan’s largest securities firm, Nomura Holdings, and its digital asset subsidiary, Laser Digital, shows that as market sentiment warms and new application scenarios keep emerging, institutional investors’ attitudes toward digital assets are becoming increasingly positive. Of those surveyed, 65% have already come to view cryptocurrencies as a tool for diversifying investment portfolios.

The survey of more than 500 investment professionals in Japan indicates that as many as 31% of respondents are optimistic about the cryptocurrency market’s outlook for the next year, up noticeably from 25% in 2024. At the same time, pessimistic sentiment in the market is also cooling, suggesting that as crypto assets gradually mature, investors’ stereotypes are quietly breaking down.

The report points to a core trend: diversifying portfolio risk. Research shows that as many as 65% of institutional investors already see cryptocurrencies as an important tool for diversified asset allocation. Even more noteworthy is that among the group that has not yet allocated but is considering investing in cryptocurrencies, 79% of respondents plan to formally enter the market within the next 3 years.

However, institutional capital is still relatively conservative, and most expect to keep their cryptocurrency allocation ratio between 2% and 5%, indicating that this wave of institutional market entry is still in its early stages.

The shift in institutional attitudes is largely due to a gradually clearer global regulatory environment. Taking Japan as an example, over the past year, authorities have actively improved the cryptocurrency regulatory framework and held in-depth discussions on asset classification, tax reform, and investor protection. Looking internationally, regulatory rules in major global markets are also becoming increasingly clear. Combined with the listing and growing adoption of spot Bitcoin and Ether ETFs, along with the booming development of real-world asset (RWA) tokenization, this has greatly eliminated the “uncertainty” that previously made institutions hesitate.

It is worth noting that institutional interest is no longer limited to simply making spreads by “buying low and selling high.” More than 60% of respondents show strong interest in staking, lending, cryptocurrency derivatives, and tokenized assets. This reflects institutions’ stronger desire for strategies that can generate stable returns, and their expectation to build more complex and advanced investment portfolios.

At the same time, stablecoins are also winning increasing favor from institutional investors. 63% of institutions are optimistic about the development potential of stablecoins. Potential application scenarios include: fund management, cross-border payments, and tokenized securities investments.

Although the outlook is optimistic, challenges still remain. The high volatility of crypto assets, counterparty risk, and the fact that the industry has not yet established a widely recognized valuation model continue to be stumbling blocks preventing some institutions from making large-scale entry. In addition, while regulatory uncertainty is easing, it has not completely gone away.

Even so, this survey releases a strong signal: the discussion focus of institutional investors has shifted from “whether to invest in cryptocurrencies” to “how to invest in cryptocurrencies.” This undoubtedly proves that digital assets are moving steadily toward mainstream adoption and are gradually becoming an indispensable “standard allocation” in institutional investment portfolios.

• This article is reprinted with permission from: 《BlockTalk》
• Original title: 《Hot money is coming in? Nomura survey: 65% of institutions view cryptocurrencies as a “tool for diversified allocation”》
• Original author: Block Sister MEL