Mlion News Analysis: Well-known financial advisors’ unexpected advice marks a historic turning point for cryptocurrency investment
Welcome to Mlion's news analysis. Today, a piece of heavy news is causing a strong shock in the financial world - well-known financial advisor Ric Edelman suggested on CNBC that the proportion of cryptocurrency allocation in the investment portfolio can reach up to 40%. This suggestion far exceeds the conservative expectations of the mainstream financial community and marks a complete change in the attitude of traditional financial professionals towards crypto assets.
News related background introduction
Let’s first understand the key people and institutions behind this proposal. [Ric Edelman is one of the founders of Edelman Financial Engines, which manages more than $290 billion in assets](https://www.binance.com/square/post/06-28-2025-ric-edelman-10-40-40-26203855190305) and is a leading independent wealth planning and workplace investment advisory firm in the United States. It is worth noting that Edelman Financial Engines is at a critical stage of business expansion. [Private equity firms Hellman & Friedman and Warburg Pincus are considering selling the $287 billion RIA company to a strategic acquirer](https://citywire.com/ria/news/287bn-edelman-financial-engines-mulls-sale-to-strategic-acquirer-sources/a2468753), and the company has just [appointed Ralph Haberli as president, effective July 2, 2025](https://www.edelmanfinancialengines.com/press/edelman-financial-engines-announces-new-president/).
At the same time, the cryptocurrency market is showing strong growth momentum. [The total market value of cryptocurrency is currently 4.05 trillion, up 0.87% from last week](https://www.coinbase.com/zh-sg/explore), and Bitcoin has [embraced multiple positive factors and stood above $108,000](https://cn.investing.com/crypto/bitcoin/news). Market data shows that [Bitcoin closed positive on a weekly basis, rebounded, and the probability of hitting a new high increased](https://cn.tradingview.com/markets/cryptocurrencies/ideas/), and the current price is stable around $107,000.
In-depth news insights and analysis
Let’s take a closer look at the implications and market impact behind this unexpected recommendation.
1. The historic shift in the stance of traditional financial elites heralds an irreversible trend towards mainstream adoption of cryptocurrencies
Edelman's change of attitude is a landmark one. [As a long-term cryptocurrency investor, Edelman acknowledged that his advice marks a significant shift from his earlier views. In 2021, he supports a minimum 1% cryptocurrency allocation](https://news.bitcoin.com/zh/jinrong-guwen-jianyi-zai-xiandai-touzi-peizhi-zuiduo-40-de-jiami-huobi/). The huge leap from 1% to a maximum of 40% reflects the improvement of cryptocurrency infrastructure and the clarification of the regulatory environment over the past four years. This shift from extreme conservatism to relative radicalism indicates that more traditional financial institutions will follow this trend, bringing a steady stream of institutional capital inflows to the cryptocurrency market.
2. The revolutionary application of diversified investment theory will reshape modern portfolio allocation standards
Edelman emphasizes the uncorrelated nature of Bitcoin and traditional asset price movements, a view supported by data. [Bitcoin is not highly correlated with other "Bitcoin-similar assets" either. Its correlation with Bitcoin reserve company MSTR, mining company MARA, RIOT, etc. is only about 0.5](https://www.facebook.com/ChinShumQuantSpeculation/posts/Bitcoin is an excellent diversification tool. More and more big investors, including listed companies, traditional financial funds, university funds, etc., are accelerating their purchase of Bitcoin because it is absolutely an excellent tool for diversification and is equipped with high upside profit margins. In the past year, Bitcoin has been closely related to it/1267527028713273/). This low correlation makes cryptocurrencies an ideal tool for optimizing the risk-adjusted return of investment portfolios. In the current market environment, traditional assets are facing inflationary pressures and geopolitical uncertainties, while the independence of cryptocurrencies provides investors with an effective means of risk hedging.
3. The acceleration of institutional capital allocation will drive major changes in the price discovery mechanism of cryptocurrencies
According to current data, [BTC accounts for 30.95% of total investor holdings, which is equivalent to one in every three cryptocurrencies being Bitcoin, a significant increase from 25.4% in November 2024](https://money.udn.com/money/story/123828/8835771). Edelman's 40% allocation recommendation far exceeds current market practice, which means that if this recommendation is widely adopted, a large amount of funds will flow into the cryptocurrency market. Considering the $290 billion in assets managed by Edelman's company, even if some clients adopt this recommendation, it will bring tens of billions of dollars of new funds to the market.
4. The conservative nature of price expectations suggests that the market has more room to rise than expected
Edelman's "relatively conservative" assessment of Bitcoin's expected value of $150,000 to $250,000 by the end of the year reveals professional investors' extremely optimistic expectations for the long-term value of cryptocurrencies. The current price of Bitcoin is about $108,000, and there is still nearly 40% room for growth from the lower limit of $150,000, while the upper limit of $250,000 means a potential increase of more than 130%. This expectation is based on the improvement of the cryptocurrency market infrastructure, the clarification of the regulatory environment, and the continuous improvement of institutional adoption, providing strong confidence support for long-term investors.
5. The paradigm shift in investment strategies will lead to a profound restructuring of the wealth management industry
[Ric Edelman, a top US financial advisor and chairman of the Digital Asset Financial Advisory Council, has changed his attitude towards Bitcoin and now recommends that investment portfolios allocate 10% to 40% of cryptocurrencies](https://www.btcc.com/zh-CN/square/BTC新闻/544415). The influence of this suggestion will far exceed individual investment decisions and is expected to drive the entire wealth management industry to re-examine the strategic position of cryptocurrencies. As more financial advisors adopt similar strategies, investor education and product innovation will accelerate, further reducing the threshold and risk of cryptocurrency investment.
Comparative analysis of market data
| Indicators | Recommendations for 2021 | Recommendations for 2025 | Growth rate |
|------|------------|------------|----------|
| Minimum configuration ratio | 1% | 10% | 900% |
| Highest configuration ratio | 1% | 40% | 3900% |
| Bitcoin price forecast | Unspecified | $150,000-250,000 | 39%-131% |
| Market maturity | Early exploration | Mainstream assets | Qualitative leap |
It is worth noting that this substantial adjustment in the allocation ratio reflects the fundamental improvement in the fundamentals of the cryptocurrency market. Currently, [the cryptocurrency ecosystem and the traditional financial ecosystem have begun to cooperate, with the total value of cryptocurrency assets being approximately US$3.2 trillion, while the total value of traditional financial market assets is US$100 trillion](https://hao.cnyes.com/post/174784), and the integration trend of the two provides investors with more diversified allocation options.
Summary and Outlook
From a comprehensive analysis, Ric Edelman's unexpected suggestions mark a complete change in the traditional financial community's perception of cryptocurrencies. The leap from marginal assets to core configurations heralds the arrival of a new era. With the influx of more institutional funds and the upgrading of investment strategies, the cryptocurrency market will usher in unprecedented development opportunities. Investors should seize this historic opportunity, rationally allocate crypto assets, and share the development dividends of the digital economy era.
Looking ahead, as the regulatory environment is further improved and the technological infrastructure continues to be optimized, the position of cryptocurrencies in modern investment portfolios will become more solid, and early investors will reap rich rewards.
Thank you for reading Mlion's news analysis.
The above content represents AI’s views and is for reference only and does not constitute investment advice.
Source: mlion.ai
