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 points out that cryptocurrencies are becoming mainstream investment tools, with 65% of institutional investors viewing them as a preferred diversification allocation.

As global asset allocation logic continues to shift, cryptocurrencies are also moving from “marginal assets” to mainstream investment tools. Research jointly released by Japan’s largest securities firm, Nomura Holdings, and its digital asset subsidiary, Laser Digital, shows that as market sentiment warms and application scenarios continue to emerge, institutional investors’ attitudes toward digital assets are becoming increasingly positive. Among them, 65% of respondents have already regarded cryptocurrencies as a tool for portfolio diversification.

This 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 over the next year, up clearly 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 being dismantled.

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

However, institutional capital is still relatively conservative for now. Most expect their cryptocurrency allocation to be kept between 2% and 5%, indicating that this wave of institutional market entry is still in its early stage.

The shift in institutional attitudes is largely attributable to the gradually clearer global regulatory environment. Taking Japan as an example, over the past year, authorities have actively strengthened the regulatory framework for cryptocurrencies, holding in-depth discussions on asset classification, tax reform, and investor protection. Looking internationally, regulatory rules across major global markets are also becoming clearer. Combined with the listing and widespread adoption of spot Bitcoin and Ethereum ETFs, and the booming development of real-world asset (RWA) tokenization, the “uncertainty” that previously made institutions hesitate has been greatly reduced.

It is worth noting that institutional interest is no longer limited to earning price spreads simply by “buying low and selling high.” More than 60% of respondents show strong interest in staking, lending, and crypto derivatives, as well as tokenized assets. This reflects that institutions are more eager for strategies that can generate stable returns, and they also expect to build more complex, advanced investment portfolios.

At the same time, stablecoins are increasingly favored by 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 promising, challenges still remain. The high volatility of crypto assets, counterparty risk, and the fact that the industry has not yet established a universally recognized valuation model are still stumbling blocks preventing some institutions from making a major push to enter the market. In addition, although regulatory uncertainty is dissipating, it has not completely gone away.

Even so, this survey still sends 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 the mainstream and are gradually becoming an indispensable “standard allocation” in institutional investment portfolios.

• This article is reprinted with permission from: 《BlockCast》
• Original title: 《Is the hot money about to enter the market? Nomura survey: 65% of institutions view cryptocurrencies as a “diversification tool”》
• Original author: Block Sister MEL