Four years ago, financial advisor Ric Edelman made a bold statement, urging individuals to consider cryptocurrencies. His conservative recommendation suggested a modest allocation in the low single digits.
In his book “The Truth about Crypto,” released in 2021, Edelman reasoned that a mere 1% allocation was a cautious approach.
Fast forward to today, and the landscape has changed dramatically.
Edelman now advocates for a much more significant investment, recommending between 10% to 40% in cryptocurrencies. This considerable shift in his perspective is nothing short of remarkable.
“Today I am saying 40%, that’s astonishing,” he informed CNBC’s Crypto World. “No one has ever said such a thing.”
However, the underlying reasons for this recommendation demand attention.
A key factor is the profound evolution in the crypto industry over the past four years. Previously, uncertainty loomed—would governments outright ban bitcoin? Would the underlying technology become obsolete? Would consumers and institutions embrace it? Now, Edelman asserts that these critical questions have found answers.
“Today, all those questions have been resolved,” stated Edelman, who leads the Digital Assets Council of Financial Advisors. “It’s radically changed and is now a mainstream asset.”
The increasing normalization of cryptocurrencies in investment portfolios reflects this transformation. Bitcoin ETFs are already attracting billions this year, symbolizing a significant acknowledgment from financial advisors and long-term investors.
Equally important is the demise of the outdated 60/40 investment model, with 60% in stocks and 40% in bonds. Edelman rightly claims this model is obsolete, especially in a world where life expectancy has skyrocketed—from 47 in the early 1900s to a staggering 85 today. Advances in medical technology could push that figure close to 100 in the coming decades.
“If you’re a financial advisor and you had a 30-year-old client saving for the future, you would advise them to invest 100% in stocks,” Edelman commented. “Today’s 60-year-old mirrors yesterday’s 30-year-old.”
“Better returns than bonds are essential, and longer equity holding periods are more critical than ever,” he added. This necessitates a rethinking of investment strategies, welcoming cryptocurrencies into a significant role.
Additionally, Edelman highlights that bitcoin does not move in lockstep with traditional assets like stocks, bonds, gold, oil, or commodities.
Investors are increasingly recognizing this unique asset class as a solution for enhancing portfolio diversification and returns. “The crypto asset class offers the opportunity for higher returns than virtually any other asset class,” Edelman asserted.
Some analysts speculate that bitcoin could achieve valuations of $150,000-$250,000 by year-end and ascend to $500,000 within the decade. Edelman remarked, “That’s a conservative estimate compared to what others are saying.”
In other cryptocurrency news:
Crypto hacks reach unprecedented heights this year. According to TRM Labs, malicious actors amassed over $2.1 billion through at least 75 hacks and exploits, a record-setting total. Over 80% of the stolen funds in the first half of 2025 stemmed from attacks on crypto infrastructures, such as stolen private keys or compromised software.
Trump housing advisor unveils innovative crypto mortgage proposal. Bill Pulte, director of the Federal Housing Finance Agency, recently spoke with CNBC’s “Money Movers” about his initiative to have Fannie Mae and Freddie Mac explore treating cryptocurrency as a federal mortgage asset.
Senate plans to finalize crypto legislation by September. Senator Tim Scott, chairman of the Senate Banking Committee, announced that legislation aimed at establishing regulatory frameworks for U.S. crypto markets should be completed by the end of September.
For more insights on these developments, tune into today’s episode of Crypto World above.
