BlackRock Says 1% Crypto Allocation in Asia Could Unlock $2 Trillion in Inflows

A small shift in portfolio strategy across Asia could trigger massive capital inflows into the cryptocurrency market, according to Nicholas Peach, Head of APAC iShares at BlackRock. Speaking at Consensus Hong Kong, Peach highlighted how even a modest 1% allocation to crypto in model portfolios could significantly reshape the digital asset landscape.

Peach pointed to the scale of untapped capital in the region. With an estimated $108 trillion in household wealth across Asia, a 1% allocation to cryptocurrencies would translate into nearly $2 trillion flowing into the market. That figure represents roughly 60% of the current total crypto market capitalization, underscoring how incremental adoption in traditional finance could have an outsized impact.

The growing institutional acceptance of crypto exchange-traded funds (ETFs) is playing a key role in this shift. BlackRock’s iShares division, the world’s largest ETF provider, has been central to expanding regulated access to digital assets. Its U.S.-listed spot Bitcoin ETF, IBIT, launched in January 2024 and quickly became the fastest-growing ETF in history, accumulating approximately $53 billion in assets under management.

However, the surge in demand is not limited to the United States. Asian investors have contributed significantly to inflows into U.S.-listed crypto ETFs. Peach noted a broader boom in ETF adoption across Asia, as investors increasingly use ETFs to gain exposure to cryptocurrencies, equities, fixed income, and commodities through regulated investment vehicles.

Several major Asian markets, including Hong Kong, Japan, and South Korea, are advancing plans to launch or expand crypto ETF offerings as regulatory clarity improves. As digital asset regulation evolves, industry experts expect regional ETF platforms to grow further.

For asset managers like BlackRock, the next phase will focus on enhancing investor education and integrating crypto into diversified portfolio strategies. With vast pools of traditional capital still on the sidelines, even conservative crypto adoption could drive substantial growth in the global digital asset market.