Ric Edelman Recommends 10% to 40% Crypto Allocation in Portfolios

Prominent financial advisor Ric Edelman has made a bold recommendation for investors to consider allocating between 10% and 40% of their portfolios to cryptocurrency. This suggestion underscores the growing legitimacy and mainstream acceptance of digital assets in the investment landscape. Edelman, who founded the Digital Assets Council of Financial Professionals, has been an advocate for crypto investments for over a decade. In 2018, he first advised investors to include bitcoin in their portfolios, and in his 2021 book “The Truth About Crypto,” he deemed even a 1% allocation to crypto as reasonable for most individuals.

Edelman's latest stance reflects a significant shift in his perspective, driven by what he describes as a "massive change" in the crypto industry over the past four years. He attributes this transformation to growing political support for digital assets, particularly following the election of U.S. President Donald Trump. Edelman believes that regulatory uncertainties and institutional hesitations, which were once major concerns, have been largely resolved, making crypto a mainstream asset class.

Edelman's firm, Edelman Financial Engines, manages nearly $300 billion in assets and has traditionally focused on retirement planning and wealth management. The firm's increasing attention to digital assets mirrors a broader trend among financial institutions that are now embracing crypto as a legitimate investment option. Despite describing crypto as the "best investment opportunity of the decade," Edelman acknowledges that a 40% allocation may not be suitable for everyone, suggesting a more conservative 10% allocation for those with lower risk tolerance.

Edelman's recommendation stands out as one of the most aggressive calls from a mainstream financial figure to date. Most financial advisors in the U.S. currently recommend allocating well under 5% of their clients' portfolios to crypto. This bold suggestion by Edelman highlights the evolving perception of cryptocurrency within the financial community, signaling a potential shift towards greater acceptance and integration of digital assets in traditional investment strategies.