Bold crypto move from Edelman, managing assets worth 300 billion dollars

Groundbreaking statements about Bitcoin and cryptocurrencies have come from Ric Edelman, a leading investor and consultant in traditional finance.

Rick Edelman, founder of Edelman Financial Engines which manages $300 billion in assets, stated in a personal X ( account formerly known as Twitter) that the time has come to say stop to classical portfolio managements as a result of the growth shown by cryptocurrencies.

"The traditional portfolio model is now dead"

"The traditional 60% stock / 40% bond portfolio model is now dead. After spending 39 years in the financial services industry, I am stating the proportion you should allocate to crypto in your portfolios," Edelman said, continuing: "Cautious investors should now allocate 10% of their portfolios to crypto. Mid-level clients should allocate 25%. Aggressive investors should direct 40% of their investments to crypto."

"An investor who does not hold crypto is effectively missing out"

Edelman, stating that investing in crypto is no longer a speculative position and that the real speculation is equivalent to not owning crypto, argued: "A passive, market-weighted index that includes all asset classes contains 3% crypto. Therefore, an investor who does not hold crypto is effectively missing out on this asset class."

"There is no logic in excluding BTC, which has performed the best in the last 15 years"

Edelman, who stated that "There is no logic in excluding an asset class that has performed the best over the last 15 years," added: "Moreover, this performance is expected to continue for the next decade or even longer."

Four years ago he was advocating for 1%

On the other hand, the experienced investor stated financial advice in his book The Truth About Crypto, written in 2021, and argued that the share of crypto in portfolios should be 1%. It can be said that Edelman has warmed up to crypto over the past four years. Speaking on the subject, Edelman said, "Today, a 40% crypto share in portfolios is safer than the 1% share from four years ago."

Corporate purchases continue

Edelman reminded that, unlike four years ago, the U.S. government is not intent on banning crypto and is even supportive of this area: The crypto sector has survived scandals and institutional participation has begun. Banks and brokerage firms can now trade and hold crypto as well." Data from the digital asset products platform Coinshares is strong enough to support Edelman’s argument. Last week, digital asset products saw an inflow of $2.7 billion, thus closing positively for 11 consecutive weeks. As of the first half of the year, $17.8 billion of capital has entered crypto through this means.

This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research when making decisions.