Even the model’s modest portfolio allocation to cryptocurrencies in Asia could spur 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 growing institutional acceptance of crypto exchange-traded funds (ETFs) – particularly in Asia – is changing expectations for the sector.
“Some model advisors are now recommending a 1% allocation to cryptocurrencies in your standard investment portfolio,” Peach said. “If you do some fun math … there’s about $108 trillion of households in all of Asia. So you take 1% of that … and that would be just under $2 trillion of inflows into the market, which is, what, 60% of what the market is now?”
Peach emphasized that point as a way to frame the extent of capital standing on the sidelines, particularly in traditional finance, SEEbiz reports. A small change in asset allocation models, he argued, could have a huge impact on the future of digital assets – even if adoption remains conservative.
BlackRock’s iShares unit is the world’s largest provider of ETFs and has played a central role in bringing regulated access to cryptocurrencies to traditional investors. The firm launched its U.S.-listed spot Bitcoin ETF in January 2024. That fund, known as IBIT, has become 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 accounted for a significant share of flows into US-listed crypto ETFs. “There’s actually been a boom in the adoption of ETFs in a broader sense in the region,” he said, noting that more investors are turning to ETFs to gain exposure to a variety of asset classes — not just cryptocurrencies, 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 watchers expect those regional platforms to deepen as regulatory clarity improves.
For BlackRock and other asset managers, the next challenge is to align product access with investor education and portfolio strategy.
“The pools of capital that are available in traditional finance are incredibly large,” Peach said. “It doesn’t take much in terms of adoption to get really significant financial results.”
