Top Advisor Ric Edelman Recommends 40% Crypto Allocation

Crypto is breaking into the financial mainstream as a top advisor pushes portfolio allocations up to 40%, signaling a bold shift toward digital assets in long-term strategies.

A dramatic pivot toward crypto is gaining traction as top advisors advocate reshaping long-term portfolio strategies to include significantly more digital assets. Financial planner Ric Edelman, founder of the Digital Assets Council of Financial Advisors, revealed on June 27 that investors should allocate between 10% and 40% of their portfolios to cryptocurrencies.

Citing structural shifts in longevity and the evolution of digital assets, Edelman argued that crypto—particularly bitcoin—now warrants a central role in modern investment frameworks. He said: “Today I am saying 40%. That’s astonishing … No one has ever said such a thing.”

A long-time proponent of crypto exposure, Edelman acknowledged that his recommendation marks a significant departure from his earlier views. In 2021, he supported as little as 1% crypto allocation. But the market has transformed, he said: “It’s radically changed and is now a mainstream asset.”

He attributed the shift to greater regulatory clarity, institutional adoption, and infrastructure maturity. Edelman dismissed the traditional 60/40 portfolio model, arguing that increasing longevity demands new asset strategies. Longer time horizons, he suggested, require greater exposure to high-growth assets like equities and digital assets.

Edelman also emphasized the portfolio benefits of diversification, stating: “Bitcoin prices don’t move in sync with stocks or bonds or gold or oil or commodities … The crypto asset class offers the opportunity for higher returns than you’re likely to get in virtually any other asset class.”

He framed this decoupling as a strategic advantage for financial advisors seeking to optimize portfolio theory. While concerns over hacks persist, Edelman’s thesis focuses on crypto’s emerging role as a core investment class amid a shifting economic landscape.

Renowned financial advisor Ric Edelman has significantly revised his guidance on cryptocurrency portfolio allocations, now recommending that clients allocate between 10% to 40% of their portfolios to digital assets. This shift marks a bold move towards integrating cryptocurrencies into mainstream investment strategies.

Edelman's revised recommendation comes amidst a backdrop of significant changes in the cryptocurrency industry. Four years ago, the sector faced numerous uncertainties, including the possibility of government bans on Bitcoin, concerns about the obsolescence of blockchain technology, and questions about the widespread adoption of digital assets. Today, Edelman asserts that these uncertainties have been resolved, and cryptocurrencies have become mainstream assets.

The financial advisor also highlights the importance of cryptocurrencies in long-term investment strategies, especially given the increasing life expectancy in the United States. Edelman argues that traditional portfolio allocations, such as 60% in stocks and 40% in bonds, are no longer sufficient. With advancements in technology and medicine, Americans are living longer, necessitating higher returns and longer holding periods for equities. Edelman suggests that a 60-year-old today is akin to a 30-year-old from previous generations, requiring a more aggressive investment approach.

Bitcoin, in particular, is noted by Edelman as a valuable portfolio diversifier due to its lack of correlation with other asset classes. He believes that digital assets tend to outperform traditional investments like stocks, bonds, and gold. This diversification benefit, coupled with the potential for higher returns, makes cryptocurrencies an attractive addition to modern portfolios.

Edelman's recommendation to allocate up to 40% of portfolios to cryptocurrencies is a significant development in the financial advisory landscape. It signals a growing acceptance of digital assets as a legitimate component of investment strategies, reflecting the evolving nature of the financial markets. As the industry continues to mature, advisors like Edelman are playing a crucial role in guiding investors through the complexities of integrating cryptocurrencies into their portfolios.