The Investment Rule Ric Edelman Just Threw Out—And What He Replaced It With

Financial advisor Ric Edelman, who once suggested minimal exposure to cryptocurrencies, now says digital assets should make up a much larger portion of investment portfolios.

In 2021, Edelman proposed that investors could allocate as little as 1% to crypto, emphasizing caution in his book The Truth About Crypto.

Today, he says the allocation range should be between 10% and 40%, a major adjustment in his stance.

Speaking with CNBC's Crypto World, Edelman admitted the shift is significant. "Recommending 40% is extraordinary," he said. "No one has really put that out there before."

Edelman attributes his new position to how rapidly the crypto landscape has evolved.

He noted that four years ago, major concerns like potential government bans on Bitcoin (CRYPTO: BTC), the reliability of the technology, and adoption by consumers and institutions were unresolved.

Today, those uncertainties have largely disappeared.

Edelman, who leads the Digital Assets Council of Financial Advisors, emphasized that crypto is now a mainstream asset.

The rise of Bitcoin ETFs, which have attracted billions of dollars this year, has helped cement digital assets as a core consideration for financial advisors and long-term investors.

Also Read: Bitcoin To New Highs? It Might Take Longer Than You Think, Glassnode Report Says

Edelman also argued that the traditional 60/40 investment strategy, 60% stocks, 40% bonds, is no longer relevant, especially as life expectancy increases.

With people potentially living up to 100 years, he said investors need higher returns and should stay invested in growth assets for much longer.

"If you're advising a 30-year-old, you'd recommend full stock exposure because they have a long investment horizon," he explained.

"But now, even a 60-year-old needs to think the same way because of increased longevity."

Edelman pointed out that Bitcoin behaves differently from stocks, bonds, and other commodities, offering valuable diversification benefits.

"Investors are starting to see crypto as a great addition to modern portfolio strategies," he said.

Crypto, he added, presents the potential for higher returns than most traditional asset classes.

Edelman acknowledged that some market analysts expect Bitcoin to reach $150,000 to $250,000 by year-end, and possibly $500,000 before 2030.

"That's actually on the conservative side compared to what others are forecasting," he said.

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