BlackRock's Peach: 1% Crypto Allocation in Asia Could Unlock $2 Trillion
By John Nada·Feb 12, 2026·4 min read
BlackRock's Nicholas Peach asserts that a 1% crypto allocation in Asia could drive nearly $2 trillion in inflows, reshaping the market landscape.
Nicholas Peach, head of APAC iShares at BlackRock, indicated that even a modest 1% allocation to cryptocurrencies in Asia could lead to nearly $2 trillion in new market inflows. Speaking at the Consensus conference in Hong Kong, Peach highlighted the vast capital pools available in traditional finance and the growing acceptance of crypto exchange-traded funds (ETFs) across the region.
Peach noted that there is approximately $108 trillion in household wealth in Asia. A mere 1% allocation from this wealth could result in significant inflows, equating to about 60% of the current cryptocurrency market size. This potential shift underscores the large amount of capital currently sidelined, which could be redirected toward digital assets with a small change in investment strategies. The concept of reallocating even a fraction of household wealth into cryptocurrencies poses a transformative opportunity for the market.
During a panel discussion at Consensus in Hong Kong, Peach pointed out that the increasing institutional acceptance of crypto ETFs is pivotal in reshaping expectations for the sector. He stated, "Some model advisors are now recommending a 1% allocation to cryptocurrencies in your standard investment portfolio." This recommendation reflects a broader trend of integrating digital assets into traditional investment frameworks, signaling a shift in investor sentiment.
The momentum for crypto adoption is not limited to the U.S. BlackRock’s iShares, known as the world’s largest ETF provider, has been pivotal in making regulated crypto investments accessible to traditional investors. The firm launched its U.S.-listed spot Bitcoin ETF in January 2024, which rapidly became the fastest-growing ETF in history, amassing nearly $53 billion in assets under management. Peach emphasized that Asian investors have been actively participating in U.S.-listed crypto ETFs, indicating a broader trend of ETF adoption in the region.
Peach highlighted that the boom in ETF adoption is not just a U.S. phenomenon. Asian investors have made up a significant share of flows into U.S.-listed crypto ETFs. He noted, “There’s actually been a boom in ETF adoption more broadly in the region,” which reflects increasing investor interest not only in cryptocurrencies but across various asset classes, including equities, fixed income, and commodities. This trend indicates a shift in how investors are looking to diversify their portfolios.
Countries like Hong Kong, Japan, and South Korea are advancing towards launching or expanding their own crypto ETF offerings. The regulatory landscape in these regions is becoming clearer, which is expected to enhance market accessibility for investors. As these countries develop their crypto ETF markets, they could play a significant role in facilitating broader adoption and integration of digital assets into mainstream investment portfolios.
For asset managers like BlackRock, the challenge lies in aligning product offerings with investor education and strategic portfolio planning. Peach remarked on the immense pools of capital present in traditional finance, suggesting that even a slight increase in crypto adoption could yield substantial financial outcomes. The ongoing development of crypto ETFs in Asia may serve as a critical pathway for integrating these digital assets into mainstream investment portfolios.
The implications of these insights are profound. If the anticipated capital flows materialize, they could significantly reshape the landscape of the cryptocurrency market, leading to increased liquidity and institutional participation. As more capital enters the market, the potential for volatility may decrease, making cryptocurrencies more appealing to traditional investors.
This could also signal a shift in how traditional investors view digital assets, potentially legitimizing them further in the eyes of mainstream finance. Enhanced regulatory clarity and support for crypto ETFs could serve as catalysts for increased institutional investment, paving the way for a more robust market environment.
As institutional acceptance of cryptocurrencies continues to rise, the dialogue around crypto investment strategies is likely to evolve. BlackRock’s role in this transformation cannot be understated. Its initiatives, particularly in the rapidly growing ETF sector, could set a precedent for other asset managers looking to tap into the growing interest in cryptocurrencies across Asia.
The future of digital assets may hinge on these developments, with significant ramifications for both markets and regulatory frameworks. As more investors recognize the potential of crypto through regulated platforms, the pathway for broader adoption seems more viable than ever. The growing acceptance and integration of cryptocurrencies within traditional finance could not only redefine investment strategies but also enhance the overall credibility and stability of the digital asset market.
As the conversation around crypto continues to expand, the potential for innovation in financial products and investment strategies is vast. The proactive approach taken by firms like BlackRock, in conjunction with evolving regulatory frameworks, will likely shape the future landscape of both the cryptocurrency and traditional finance sectors.