Ric Edelman advises investors to allocate 10% to 40% of their portfolios to crypto, based on their risk tolerance.
Edelman predicts Bitcoin could reach $500,000 if just 1% of global assets shift into the cryptocurrency sector.
His endorsement is viewed as a major TradFi signal, given his $300 billion asset management influence in the advisory industry.
Ric Edelman, the founder of Edelman Financial Engines and DACFP, has recommended investors shift a significant portion of their portfolio to cryptocurrency. In a recent whitepaper, Edelman advised allocating between 10% and 40% to crypto, depending on individual risk tolerance. This guidance marks a break from the conventional 60/40 stock-to-bond portfolio model, which he believes is no longer practical in a rapidly advancing economic environment.
According to Edelman, conservative investors should hold 10% in crypto, moderate investors 25%, and aggressive investors 40%. He cited technological advancements and increased life expectancy as reasons to move away from traditional investment formulas. He emphasized that ignoring crypto means betting against an asset class that has outperformed all others over the past 15 years.
Bitcoin Price Could Hit $500,000 with Minimal Asset Shift
Edelman also presented a bullish projection for Bitcoin, suggesting it could reach $500,000. He explained that a 1% allocation of the $750 trillion in global assets toward Bitcoin would inject $7.5 trillion into the market. Based on current valuations, this inflow could significantly drive the asset’s price. He underlined this estimate as simple arithmetic based on supply and demand trends.
Edelman pointed to growing institutional interest and policy changes as key drivers for crypto’s rise. He highlighted that Tether, a major stablecoin, reported $13 billion in profits last year, surpassing companies like McDonald’s and Ford. He also noted that a pro-crypto political climate, especially following Donald Trump’s reelection, is setting favorable conditions for digital assets.
Traditional Advisors Criticized for Avoiding Crypto Exposure
In his whitepaper, Edelman called out financial advisors who continue to avoid crypto recommendations. He argued that advisors should be educating clients on various ways to gain exposure, from direct purchases to crypto-related equities. The report included guidance on addressing common objections and integrating crypto into client portfolios responsibly.
Bloomberg analyst Eric Balchunas labeled Edelman’s statement as one of the strongest endorsements for crypto from traditional finance since BlackRock’s Larry Fink. Given Edelman’s role in managing $300 billion in assets for over a million clients, his influence on the advisory community is substantial.
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