BlackRock executive estimates that allocating just 1% to crypto in Asia may unlock $2 trillion in flows.

A small allocation to crypto across Asia’s vast wealth base could unlock trillions in new capital flows, according to a senior executive at BlackRock.

Speaking during a panel at Consensus in Hong Kong, Nicholas Peach, head of APAC iShares, highlighted the rapid institutionalization of crypto exchange-traded funds (ETFs) and their growing acceptance among professional investors in the region.

Peach noted that some model portfolio advisors have begun recommending a 1% allocation to cryptocurrencies within diversified portfolios. Given that Asia holds an estimated $108 trillion in household wealth, such an allocation would equate to nearly $2 trillion in potential inflows — a figure that would represent a sizable share of the current crypto market.

He stressed that the example illustrates the magnitude of capital still concentrated in traditional finance. Even a conservative shift in asset allocation models, he argued, could materially reshape the digital asset landscape.

BlackRock’s iShares unit, the largest ETF provider globally, has played a pivotal role in expanding regulated crypto access. In January 2024, the firm launched the iShares Bitcoin Trust (IBIT) in the United States. The fund quickly became the fastest-growing ETF in history and now manages roughly $53 billion in assets.

Peach emphasized that demand for crypto ETFs is not confined to the U.S. Investors across Asia have contributed meaningfully to flows into U.S.-listed products. More broadly, ETF adoption in the region has accelerated, with investors increasingly using the vehicle to gain exposure across asset classes — including equities, fixed income, commodities, and digital assets.

Key financial hubs such as Hong Kong, Japan, and South Korea are moving to introduce or expand crypto ETF frameworks as regulatory clarity improves. Market participants expect these local platforms to deepen over time.

For BlackRock and its peers, Peach said the focus now shifts to pairing product access with investor education and disciplined portfolio construction.

“The capital pools in traditional finance are extraordinarily large,” he said. “It doesn’t take much adoption to drive very significant financial outcomes.”