Ric Edelman wants 10%-40% of portfolio in crypto

4 years ago, financial advisor Ric Edelman went out on a limb in saying everyone should hold cryptocurrencies. But how much? Low single digits was his advice.

In his “The Truth about Crypto” book in 2021, Edelman said as little as a 1% allocation was reasonable.

Lots has modified.

This week, Edelman said financial advisors ought to be recommending anywhere from 10% to 40% allocations to cryptocurrencies, and he’s aware it’s quite a shift in his own pondering.

“Today I’m saying 40%, that is astonishing,” he told CNBC’s Crypto World in an interview. “Nobody has ever said such a thing.”

However the “why” is the more essential thing.

For one, it’s due to the massive change seen within the industry, what he called “the evolution of crypto prior to now 4 years,” he said.

4 years ago, Edelman said, we didn’t know if governments would ban bitcoin, or if the technology could be obsolete, and if consumers and institutions would adopt it.

“Today, all those questions have been resolved,” said Edelman, who heads the Digital Assets Council of Financial Advisors. “It’s radically modified and is now a mainstream asset,” he added.

Needless to say, the more mainstream crypto becomes, the more it’s going to feature across investment portfolios. Bitcoin ETFs have been taking in billions this 12 months, among the many top asset classes in ETF inflows this 12 months, one sign of crypto’s arrival on the radar of more financial advisors and long-term investors.

The opposite big shift Edelman sees longer-term, and just as essential to his view of crypto allocations, is the tip of the standard 60/40 model of long-term investing, with 60% in stocks and 40% in bonds, which Edelman says is obsolete as a consequence of increased longevity — life expectancy within the U.S. has risen from 47 within the 1900s to 85 today, and is projected to potentially reach as high as 100 over the subsequent 30 years if technological advances related to medicine proceed. 

“In case you’re a financial advisor and also you had a 30-year-old client who was saving for his or her long-term future, you’ll tell them to place 100% of their money in stocks, because they’ve 50 years to go,” said Edelman. “Today’s 60-year-old is sort of like yesterday’s 30-year-old,” he added.

“It is advisable improve returns than you’ll be able to get from bonds and you might want to hold equities longer than ever before,” Edelman said. And as that allocation model shifts away from the classic 40% bond allocation, he said crypto must play a much greater role in investing.

“Bitcoin prices don’t move in sync with stocks or bonds or gold or oil or commodities,” Edelman said. 

He added that investors are starting to acknowledge it as a “wonderful option to improve modern portfolio theory statistics.”

“The crypto asset class offers the chance for higher returns than you are prone to get in virtually another asset class,” Edelman said.

Some analysts predict bitcoin will hit $150,000-$250,000 by the tip of this 12 months and $500,000 by the tip of this decade. Edelman said, “That is a conservative estimate in comparison with what others are saying.” 

In other crypto news of note on Friday:

Crypto hacks hit a brand new record in the primary half of the 12 months. In line with TRM Labs, bad actors raked in over $2.1 billion in no less than 75 different hacks and exploits, setting a brand new record. Attacks on crypto infrastructure, like stealing private keys and seed phrases or compromises of front-end software, accounted for over 80% of the funds stolen in 2025’s first half. 

Trump housing advisor tells CNBC about crypto mortgage plan. Bill Pulte, the director of the Federal Housing Finance Agency, joined CNBC’s “Money Movers” on Friday to debate the plan he released this week to have Fannie Mae and Freddie Mac determine methods to count crypto as a federal mortgage asset.

Senate targets end of September for crypto bill. Senator Tim Scott, chairman of the Senate Banking Committee, said at an event on Thursday that laws to ascertain rules for U.S. crypto markets shall be finished by the tip of September.

You possibly can can catch more on these headlines in today’s Crypto World episode above.