Institutional investors are warming to digital assets, with improving sentiment and broader use cases emerging as key drivers of adoption, according to a new survey from Tokyo-based bank Nomura and its crypto unit Laser Digital.

The study, based on responses from more than 500 investment professionals in Japan, found that 31% of respondents now hold a positive outlook on crypto over the next year, up from 25% in 2024. Meanwhile, negative sentiment has declined, pointing to a gradual shift in perception as the asset class matures.

A central theme is diversification. Some 65% of respondents said they view crypto as a portfolio diversifier, while 79% of those considering exposure plan to invest within three years. Most expect relatively…