BlackRock executive Nicholas Peach said even a small shift in Asian portfolio allocations toward cryptocurrencies could generate huge inflows to the digital asset market.
Speaking during a panel at Consensus Hong Kong, Peach noted that if advisors recommended just a measly 1% allocation to cryptocurrencies in standard portfolios in Asia, it could translate to nearly $2 trillion in new capital entering the space, according to CoinDesk information.
Peach pointed to the scale of household wealth across the region, estimating roughly $108 trillion in total assets, and argued that modest adjustments to traditional investment models could have an outsize effect on crypto markets.
The comments come as BlackRock continues to see strong demand for cryptocurrency exchange-traded funds, particularly through its iShares unit. The company’s US-listed Bitcoin spot ETF, IBIT, has grown rapidly since its launch in January 2024 and now has nearly $53 billion in assets under management.
Peach added that Asian investors have contributed significantly to flows into US-listed crypto ETFs.
Regulators in markets such as Hong Kong, Japan, and South Korea are also moving toward broader crypto ETF offerings, signaling growing institutional acceptance across Asia.
BlackRock CEO: Bitcoin and cryptocurrencies have potential
Last year, BlackRock CEO Larry Fink publicly moved from being a critic of Bitcoin to recognizing its potential.
Fink described Bitcoin as a “fear asset,” often purchased as a hedge against financial insecurity, geopolitical instability and currency debasement, but warned that Bitcoin remains volatile and heavily influenced by leveraged actors, making short-term trading risky.
However, he suggested that it can provide significant portfolio insurance when held as a hedge.
Also last year, BlackRock expanded access to Bitcoin globally, launching its flagship iShares Bitcoin ETF (IBIT) in Australia.
The world’s largest asset manager listed the product on the Australian Stock Exchange (ASX) under the symbol IBIT, giving local investors regulated exposure to Bitcoin through a traditional exchange-traded structure.
At the time of these events last year, Bitcoin was trading near all-time highs above $100,000. Currently, Bitcoin is down 30% from those levels, trading near $68,000.
Last week, the bears brought the price down sharply, sending it into oversold territory on the weekly RSI, triggering a sharp rebound.
After such a sharp drop and rebound from $60,000, the price is likely to remain range-bound for the next few weeks. Don’t expect any movement above $80,000 or below $60,000 during this period, according to data from Bitcoin Magazine.