BlackRock CEO Nicholas Peach said even a small shift in Asian portfolio allocations towards crypto could generate huge inflows into the digital asset market.
Speaking during a panel at Consensus Hong Kong, Peach noted that if advisors recommended just a paltry 1% allocation to crypto across standard portfolios in Asia, that could translate into nearly $2 trillion in new capital entering the space, according to CoinDesk reporting.
Peach pointed to the scale of household wealth across the region, estimating around $108 trillion in total assets, and argued that modest adjustments in traditional investment models could have an overall effect on crypto markets.
The comments come as BlackRock continues to see strong demand for crypto exchange-traded funds, particularly through its iShares unit. The firm’s US-listed spot Bitcoin ETF, IBIT, has grown rapidly since launching in January 2024 and now has nearly $53 billion in assets under management.
Peach added that Asian investors have contributed significantly to flows into the US-listed crypto ETFs.
Regulators in markets including Hong Kong, Japan and South Korea are also moving toward broader crypto-ETF offerings, signaling growing institutional acceptance across Asia.
BlackRock CEO: Bitcoin, crypto has potential
Last year, Larry Fink, CEO of BlackRock, publicly switched from being a critic of Bitcoin to acknowledging its potential.
Fink described Bitcoin as an “asset of fear,” often bought as a hedge against financial uncertainty, geopolitical instability and currency depreciation, but he warned that Bitcoin remains volatile and heavily influenced by leveraged players, making short-term trading risky.
However, he suggested that it can provide meaningful portfolio insurance when held as a hedge.
Also last year, BlackRock expanded Bitcoin access globally, launching its flagship 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, giving local investors regulated exposure to Bitcoin through a traditional exchange-traded structure.
At the time of this development 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, bears pushed the price down sharply, sending it into oversold territory on the weekly RSI, triggering a strong rally.
After such a steep decline and a jump from $60,000, the price is likely to remain range bound for the coming weeks. Don’t expect any move above $80,000 or below $60,000 during this period, according to Bitcoin Magazine data.