Ric Edelman, the prominent American financial consultant, now recommends 10% to 40% of an investor’s funds be placed in crypto assets. He leads the Digital Assets Council of Financial Advisors and believes cryptocurrencies have deservedly achieved a central position within long-term holdings.
This is a marked shift from his 2021 stance, with him then recommending a 1% crypto position for risk-averse investors. Edelman emphasizes the end of relying on the traditional 60/40 stock-bond asset allocation split. He contends longer lives require tougher returns over longer stretches.
As Americans live longer and longer, through the 80s and 90s, their portfolios must be realigned to accommodate longer retirement phases and riskier inflationary requirements. Edelman points to four years of rapid progress in cryptocurrency infrastructure and adoption, which justify larger allocations.
He notes that earlier concerns like government crackdowns or technological failure have largely disappeared. He sees crypto as a recognized asset class alongside traditional options like stocks and bonds.
Crypto ETFs gain momentum with institutional investors
He makes the argument Bitcoin and other cryptocurrencies have their returns uncorrelated, diversifying the portfolio and reducing risk exposure. Bitcoin itself often goes counter to stocks, gold, and oil, so it has a unique asset allocation role. Edelman also makes the observation Bitcoin ETFs have brought in the billions this year, confirming broader institutional demand.
He believes that today’s 60-year-olds face the same investment horizon that 30-year-olds once had. For that reason, he encourages advisors to embrace equities and digital assets for sustained portfolio growth. He claims bonds alone can no longer deliver the long-term performance required to meet future financial needs.
Optimism by Edelman is supported by bullish analyst price targets, expecting bitcoin will be worth $250,000 some time soon. He believes these projections are conservative given the maturing of the market, regulatory standardization, and increasing demand by investors. As crypto proceeds towards the mainstream, Edelman expects even greater integration with modern financial planning.
