- Ric Edelman recommends up to 40% crypto in aggressive portfolios, calling it a core asset for all investors.
- He says owning no crypto is now speculative and the 60/40 stock-bond model is outdated.
- TradFi voices like Eric Balchunas view Edelman’s message as the strongest since Larry Fink’s crypto pivot
Ric Edelman, founder of Edelman Financial Engines, has issued one of the strongest endorsements of crypto from the traditional finance world since BlackRock’s Larry Fink.
In a new message to investors, Edelman called for significant crypto exposure across all portfolios, arguing that failing to own digital assets is now the real speculative bet.
Edelman’s New Allocation Advice
He said conservative investors should now have 10% of their portfolio in crypto, while moderate investors should allocate 25%. For aggressive clients, the recommendation jumps to 40%.
Edelman’s firm manages $300 billion for 1.3 million clients. His views often influence other registered investment advisors (RIAs) across the country. His statement marks a major shift in how the financial advisory industry may approach crypto allocations moving forward.
Crypto Is Now a Core Asset, Edelman Says
Edelman argued that crypto can no longer be treated as speculative.
“Failing to own crypto is now the speculative position,”
he wrote. According to him, a market-weighted index of all assets includes about 3% crypto, meaning any passive investor not holding crypto is essentially shorting the asset class.
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He also declared that the traditional 60/40 stock-bond model is no longer viable. Longevity and exponential technologies, he noted, require new asset allocation strategies. Edelman believes crypto is now essential for proper diversification.
Bitcoin Has Outperformed Every Asset Class for 15 Years
The advisory stressed that there is no logic in excluding an asset class that has outperformed for 15 consecutive years. Edelman cited data showing that portfolios including Bitcoin consistently delivered higher returns with lower risks. These portfolios also had better Sharpe and Sortino ratios, lower standard deviation, and improved drawdown figures compared to those without Bitcoin.
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The statement presents crypto as more than a hedge or alternative play. It positions it as a core part of long-term financial planning.
TradFi Analysts Call It a Turning Point
Eric Balchunas of Bloomberg called the announcement “arguably the most important full-throated endorsement of crypto from TradFi since Larry Fink.” He highlighted Edelman’s influence across the financial advisory industry, where he consistently ranks at the top of Barron’s list of U.S. advisors.
Balchunas also noted that while Edelman used the term “crypto,” Bitcoin likely dominates that allocation.
“Everyone acknowledges that Bitcoin is special,”
Balchunas said.
“But sometimes people say crypto for speed. It’s like saying ‘passive’ in the fund world. Connotation can matter more than denotation.”
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