A 1% allocation to crypto across standard portfolios in Asia could translate into nearly $2 trillion of fresh market inflows, according to Nicholas Peach, head of APAC iShares at BlackRock. Speaking at Consensus Hong Kong, Peach framed the figure as a way to show how much capital still sits outside digital assets in traditional finance.
He said some model portfolio advisers are already recommending a 1% allocation to cryptocurrencies in a typical investment portfolio. Using Asia’s roughly $108 trillion in household wealth as the base, Peach said that kind of allocation would amount to just under $2 trillion in potential inflows. By his calculation, that is about 60% of the current size of the market.
Asian demand is already visible in crypto ETF flows
Peach linked that argument to growing institutional acceptance of crypto exchange-traded funds, especially in Asia. He said Asian investors already account for a meaningful share of flows into U.S.-listed crypto ETFs. The point was clear: demand is not confined to the U.S., and investors in the region are using ETFs as a familiar access route to gain crypto exposure.
He also described a broader surge in ETF adoption across Asia. Investors in the region are increasingly turning to ETFs to express views across asset classes, including crypto, equities, fixed income, and commodities. For traditional investors, regulated ETF wrappers can matter as much as the underlying asset itself because access, compliance, and portfolio fit all affect allocation decisions.
IBIT has grown to nearly $53 billion
BlackRock’s iShares business, the world’s largest ETF provider, has been central to the rollout of regulated crypto investment products. The firm launched its U.S.-listed spot Bitcoin ETF, IBIT, in January 2024. The article says the fund became the fastest-growing ETF in history and now holds nearly $53 billion in assets under management.
Peach’s comments also point to the next issue facing large asset managers. Access alone is not the whole story. Product distribution now has to be matched with investor education and portfolio construction, especially if crypto is going to move from a satellite trade into a small but formal allocation inside standard models.
Hong Kong, Japan, and South Korea are in focus
The report noted that several Asian markets are moving toward launching or expanding crypto ETF offerings, including Hong Kong, Japan, and South Korea. Industry watchers expect those regional platforms to deepen as regulatory clarity improves.
Peach’s broader message was simple. Digital assets may not need aggressive portfolio shifts to attract large sums from traditional finance. In a region with enormous household wealth, even a conservative change in allocation models could produce a very large capital effect.