BlackRock executive Nicholas Peach said even a small shift in Asia’s portfolio allocation toward cryptocurrencies could generate massive inflows into the digital asset market.
According to a report by CoinDesk, during a panel discussion at Consensus Hong Kong, Peach noted that nearly $2 trillion of new capital could flow into the space if advisors recommended just 1% of crypto allocations across standard portfolios in Asia.
Pointing to the size of household wealth across the region, with total assets estimated at approximately $108 trillion, Peach argued that even modest adjustments to traditional investment models could have a significant impact on the crypto market.
The comments come as BlackRock continues to see strong demand for its cryptocurrency exchange-traded funds, particularly through its iShares division. IBIT, the company’s U.S.-listed spot Bitcoin ETF, has grown rapidly since its founding in January 2024 and now manages nearly $53 billion in assets.
Peach added that Asian investors are contributing significantly to inflows into US-listed crypto ETFs.
Regulators in markets including Hong Kong, Japan and South Korea are also moving to offer a wider range of crypto ETFs, signaling growing institutional acceptance across Asia.
BlackRock CEO: Bitcoin, cryptocurrencies have potential
Last year, BlackRock CEO Larry Fink publicly pivoted from being a critic of Bitcoin to acknowledging its potential.
Fink described Bitcoin as a “fear asset,” often purchased as a hedge against financial instability, geopolitical instability and currency decline, but warned that it remains highly susceptible to volatile and leveraged players and that short-term trading is risky.
But he suggested it could provide meaningful portfolio insurance if held as a hedge.
Last year, BlackRock also expanded access to Bitcoin globally, launching its flagship product, the iShares Bitcoin ETF (IBIT), in Australia.
The world’s largest asset manager listed the product on the Australian Securities Exchange (ASX) under the ticker IBIT, offering local investors regulated exposure to Bitcoin through a traditional exchange trading structure.
At the time of these developments last year, Bitcoin was trading near all-time highs of over $100,000. Bitcoin is currently trading around $68,000, down 30% from these levels.
Last week, the bears sent the price plummeting, pushing it into oversold territory on the weekly RSI and triggering a strong rebound.
After such a steep drop and rebound from $60,000, prices are likely to remain range-bound for the next few weeks. According to data from Bitcoin Magazine, we do not expect any price movement above $80,000 or below $60,000 during this period.
