A new survey conducted by Tokyo-based Nomura and its crypto division, Laser Digital, reveals that 65% of institutional investors regard cryptocurrencies as essential for portfolio diversification. The survey, which included over 500 investment professionals in Japan, shows a rise in positive sentiment towards crypto, now at 31%, up from 25% in 2024. Additionally, 79% of those contemplating cryptocurrency investments expect to allocate between 2% and 5% of their portfolios within the next three years. The survey highlights a shift in focus from whether to invest in crypto to how to integrate it into portfolios, reflecting a maturation of the asset class. This change is supported by a more favorable regulatory environment in Japan and globally, with clearer frameworks and the introduction of crypto investment products like exchange-traded funds (ETFs). Furthermore, over 60% of respondents expressed interest in yield-generating strategies, including staking and lending. Despite the positive trends, challenges such as volatility and regulatory uncertainty persist, indicating that while interest is growing, institutions are still navigating the complexities of digital asset investments.