Even a modest model portfolio allocation to crypto in Asia could drive massive inflows into the market, according to Nicholas Peach, head of APAC iShares at BlackRock.
Speaking on a panel at Consensus Hong Kong, Peach said the growing institutional acceptance of crypto exchange-traded funds (ETFs) – particularly in Asia – is reshaping expectations for the sector.
“Some model advisors now recommend a 1% allocation to cryptocurrencies in your standard investment portfolio,” Peach said. “If you do some funny math… there’s about $108 trillion of household wealth across Asia. So you take 1% of that… and that would be just south of $2 trillion of access to the market, which is what, 60% of what the market is now?”
Peach emphasized the point as a way to frame the extent of capital sitting on the sidelines, particularly in traditional finance. A small shift in asset allocation models, he argued, could have an overall impact on the future of digital assets — even if adoption remains conservative.
BlackRock’s iShares unit is the world’s largest ETF provider and has played a central role in providing regulated crypto access to traditional investors. The firm launched its US-listed spot Bitcoin ETF in January 2024. This fund, known as IBIT, became the fastest-growing ETF in history, now with nearly $53 billion in assets under management.
But according to Peach, the boom is not just an American story. Asian investors have made up a significant share of flows into US-listed crypto ETFs. “There has actually been a boom in ETF adoption more broadly in the region,” he said, noting that more investors are turning to ETFs to express views across asset classes — not just crypto, but also equities, fixed income and commodities.
Several markets in Asia, including Hong Kong, Japan and South Korea, are moving towards launching or expanding crypto ETF offerings. Industry observers expect these regional platforms to deepen as regulatory clarity improves.
For BlackRock and other asset managers, the next challenge is matching product access with investor education and portfolio strategy.
“The pools of capital available in traditional finance are incredibly large,” Peach said. “It doesn’t take much in terms of adoption to lead to really significant financial results.”
