Nicholas Peach, head of APAC iShares at BlackRock, said that even a modest model portfolio allocation to Asian cryptocurrencies could drive significant inflows into the market.
During a panel discussion at Consensus Hong Kong, Peach said increased institutional acceptance of crypto exchange traded funds (ETFs), particularly in Asia, is reshaping expectations for the sector.
“Some model advisors currently recommend a 1% allocation to cryptocurrencies in a standard investment portfolio,” Peach said. “Just to do some interesting math…household wealth across Asia is about $108 trillion. So if you take 1% of that…that’s just south of $2 trillion of inflows into the market. So 60% of the current market?”
Pietsch emphasized this point as a way to frame the scale of capital that is sidelined, especially in traditional finance. He argued that even if implementation remains conservative, small changes in asset allocation models can have a huge impact on the future of digital assets.
BlackRock’s iShares division is the world’s largest ETF provider and has played a central role in bringing access to regulated cryptocurrencies to traditional investors. The company launched a U.S.-listed spot Bitcoin ETF in January 2024. The fund, known as IBIT, has become the fastest-growing ETF in history and currently has nearly $53 billion in assets under management.
But Peach says this boom isn’t just limited to the United States. Asian investors account for a significant portion of the inflows into US-listed crypto ETFs. “We are actually seeing a boom in ETF adoption more broadly in the region,” he said, noting that more investors are turning to ETFs to express their views across asset classes, including not only cryptocurrencies but also stocks, bonds, and commodities.
Several markets in Asia, including Hong Kong, Japan, and South Korea, are moving to launch or expand their crypto ETF offerings. Industry observers expect these regional platforms to deepen as regulatory clarity improves.
The next challenge for BlackRock and other asset managers is to match product access with investor education and portfolio strategy.
“The pool of capital available in traditional finance is incredibly large,” Peach said. “In terms of implementation, it doesn’t take long to lead to really significant financial results.”
