Ric Edelman, a prominent financial advisor, claims that institutional clients should invest between 10% and 40% of their portfolios into crypto. His firm manages $300 billion, making this a very influential statement.
Some have questioned corporations’ BTC acquisitions, claiming that they represent a bubble. Edelman’s strong endorsement could outweigh these concerns and keep fresh capital moving into Web3.
Edelman Advises Crypto Investment
Traditional finance and the crypto industry have had a rocky relationship over the years, but it’s improving. Corporations worldwide are following MicroStrategy’s playbook, buying Bitcoin and other assets in droves.
Today, prominent ETF analysts noted that one of TradFi’s biggest advisors is advocating heavily for crypto investment:
Edelman’s recommendations shocked many casual observers. He essentially claimed that crypto has been too valuable for clients to ignore and that fund managers have a fiduciary responsibility to invest in it.
Since when is a 10% crypto allocation considered a “conservative” position, especially for hedge funds?
Still, many crypto-native readers may wonder what Ric Edelman’s relevance actually is. Eric Balchunas, another prominent ETF analyst, was apparently floored, comparing Edelman’s message to BlackRock’s famous turn toward crypto:
“Holy smokes. This is the arguably the most important full-throated endorsement of crypto from TradFi world since Larry Fink. This guy is Mr. RIA (Registered Investment Advisor). He manages $300 billion for 1.3 million clients and tops the Barron’s list of Top Financial Advisors regularly,” he claimed.
This is extremely high praise. BlackRock wasn’t pro-crypto for years, but its Bitcoin ETF became one of its best-performing products. So, it’s not new that major financial advocates have changed their stance towards digital assets.
Meanwhile, Edelman’s fund manages $300 billion. So, could he realistically direct 25% or more to funnel into Bitcoin investment? If he commits to this strategy wholeheartedly, how many competitors could follow it?
If nothing else, the markets are already primed for a surge of crypto investment. Crypto stocks are outperforming most altcoins, significantly impacting the DeFi ecosystem.
Skeptical voices are also growing in number, so a top-level sign of faith could keep the momentum steady.
However, this momentum might not apply to altcoins. Balchunas claimed that Edelman was trying to present a simplified message by discussing crypto investment rather than Bitcoin specifically.
Objectively speaking, Bitcoin represents the vast majority of corporate purchases. Nearly 90% of fund investments are in BTC, and it’s liable to remain the preferred asset for now.
