A modest shift in investment portfolios toward cryptocurrencies in Asia could unlock nearly $2 trillion in new capital for the digital asset market, according to Nicholas Peach, head of APAC iShares at BlackRock.
Speaking at the Consensus Hong Kong conference on Wednesday, Peach outlined the potential impact of even a conservative allocation to crypto by Asian institutions. “Some model advisors are now recommending a 1% allocation to cryptocurrencies in your standard investment portfolio,” he said. “If you do some fun math… there’s about $108 trillion of household wealth in all of Asia. So you take 1% of that… and that’d be just south of $2 trillion of inflows into the market, which is what, 60% of what the market is now?”
Peach, who leads BlackRock’s iShares franchise across the Asia-Pacific region, emphasized the scale of capital available and the potential for outsized impact from relatively small shifts in asset allocation. He framed the projection as a demonstration of the transformative potential of increased adoption, even if it remains measured.
BlackRock’s iShares unit launched the first U.S.-listed spot Bitcoin ETF, IBIT, in January 2024. The fund has rapidly grown to hold nearly $53 billion in assets under management, becoming the fastest-growing ETF in history, according to BlackRock.
However, Peach indicated that the demand driving the growth of crypto ETFs is not limited to the United States. Asian investors have contributed significantly to the inflows into U.S.-listed products, and broader ETF adoption is increasing across the region. “There’s actually been a boom in ETF adoption more broadly in the region,” he said, noting that investors are increasingly using ETFs to gain exposure to a range of asset classes, including equities, fixed income, and commodities.
Several Asian markets, including Hong Kong, Japan, and South Korea, are actively developing their own crypto ETF frameworks, with regulatory clarity expected to further deepen regional platforms.
Peach highlighted the importance of investor education and portfolio strategy as key challenges for BlackRock and other asset managers. “The pools of capital that are available in traditional finance are unbelievably large,” he said. “It doesn’t take much in terms of adoption to lead to really significant financial results.”
Prior to his current role, Peach served as the APAC Head of Markets and Investments within BlackRock Global Markets & Index Investments, where he focused on delivering market quality and investment integrity for the firm’s index funds and iShares ETFs. He previously held a leadership position in Equities Electronic Execution Services at Goldman Sachs in Hong Kong.
