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 choice for diversification.

As the logic of global asset allocation gradually shifts, 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 application scenarios continue to emerge, institutional investors’ attitudes toward digital assets are becoming increasingly positive—of which 65% of respondents have already considered cryptocurrencies as a tool for diversifying their investment portfolios.

The survey, conducted among more than 500 investment professionals in Japan, indicates that as many as 31% of respondents are optimistic about the outlook for the cryptocurrency market 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 breaking down.

The report highlights a core trend: diversifying investment 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 group that has not yet allocated but is considering investing in cryptocurrencies, 79% of respondents plan to enter the market formally within the next 3 years.

However, institutional capital is still relatively cautious, and most expect to keep the allocation ratio of cryptocurrencies between 2% and 5%, indicating that this wave of institutional entry is still at an early stage of emergence.

The shift in institutional stance is largely attributable to the gradually clearer global regulatory environment. Taking Japan as an example, over the past year, authorities have actively improved the cryptocurrency regulatory framework, holding in-depth discussions on asset classification, tax reform, and investor protection. Looking internationally, regulatory rules across major global markets are also becoming clearer; together with the listing and growing popularity of spot Bitcoin and Ether ETFs, and the booming development of real-world asset (RWA) tokenization, the “uncertainty” that previously held institutions back has been greatly reduced.

It is worth noting that institutional interest is no longer limited to simply profiting from spreads 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 seeking 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 optimistic, challenges remain. The high volatility of crypto assets, counterparty risk, and the fact that the industry has not yet established a set of valuation models widely recognized by the market are still stumbling blocks preventing some institutions from making a major move into the market. 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, gradually becoming an indispensable “standard allocation” in institutional investment portfolios.

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