Financial advisor Ric Edelman: Crypto allocation should be as high as 40%

Four years ago, Ric Edelman recommended just a 1% crypto allocation. But this week, he suggested financial advisors should recommend allocating 10% to 40% of portfolios to crypto, citing the sector's dramatic evolution, growing institutional adoption, and regulatory clarity.

Bitcoin ETFs have seen billions in inflows this year, signaling crypto’s mainstream status. Edelman also said the traditional 60/40 portfolio is outdated due to longer life expectancy, and crypto helps improve portfolio diversification because it's uncorrelated with traditional assets.

Some analysts forecast Bitcoin reaching $150K–$250K by year-end and $500K by 2030. Meanwhile, crypto hacks hit a new record in H1 2025 with over $2.1B stolen. The U.S. government is exploring including crypto in mortgage assets and targets a crypto regulatory bill by September.