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Bigger bitcoin HODL: Time for 10% to 40% of portfolio in crypto, say financial advisor Ric Edelman
Bigger bitcoin HODL: Time for 10% to 40% of portfolio in crypto, say financial advisor Ric Edelman

CNBC

time17 hours ago

  • Business
  • CNBC

Bigger bitcoin HODL: Time for 10% to 40% of portfolio in crypto, say financial advisor Ric Edelman

Four years ago, financial advisor Ric Edelman went out on a limb in saying everyone should hold cryptocurrencies. But how much? Low single-digits was his recommendation. In his "The Truth about Crypto" book in 2021, Edelman said as low as a 1% allocation was reasonable. A lot has changed. This week, Edelman said financial advisors should be recommending anywhere from 10% to 40% allocations to cryptocurrencies, and he is aware it's quite a shift in his own thinking. "Today I am saying 40%, that's astonishing," he told CNBC's Crypto World in an interview. "No one has ever said such a thing." But the "why" is the more important thing. For one, it's because of the massive change, "the evolution of crypto in the past four years," he said. Four years ago, Edelman says, we didn't know if governments would ban bitcoin, or if the technology would be obsolete, and if consumers and institutions would adopt it. "Today, all those questions have been resolved," said Edelman, who heads the Digital Assets Council of Financial Advisors. "It's radically changed and is now a mainstream asset," Edelman added. For sure, the more mainstream crypto becomes, the more it will feature across investment portfolios. Bitcoin ETFs have been taking in billions this year, among the top asset classes in ETF inflows this year, one sign of crypto's arrival on the radar of more financial advisors and long-term investors. The other big shift Edelman sees longer-term, and just as important to his view of crypto allocation, is the end of the traditional 60/40 model of long-term investing, with 60% in stocks and 40% in bonds, which Edelman says is obsolete due to increased longevity, and life expectancy in the U.S., that has risen from 47 in the 1900s to 85 today, and is projected to potentially reach as high as 100 over the next 30 years if technological advances related to medicine proceed. "If you're a financial advisor and you had a 30 year-old client who was saving for their long term future, you would tell them to put 100% of their money in stocks, because they have 50 years to go," said Edelman. "Today's 60 year-old is kind of like yesterday's 30 year-old," he added. "You need to get better returns than you can get from bonds and you need to hold equities longer than ever before," Edelman said. And as that allocation model shifts away from the classic 40% bond allocation, he said crypto needs to play a much bigger role in investing. "Bitcoin prices don't move in sync with stocks or bonds or gold or oil or commodities," Edelman said. He added that investors are starting to recognize it as a "wonderful way to improve modern portfolio theory statistics. "The crypto asset class offers the opportunity for higher returns that you're likely to get in virtually any other asset class." Edelman said. Some analysts predict bitcoin will hit $150,000-$250,000 by the end of this year and $500,000 by the end of this decade. Edelman says, "that's a conservative estimate compared to what others are saying." Crypto hacks hit a new record in the first half of the year. According to TRM Labs, bad actors raked in over $2.1 billion in at least 75 different hacks and exploits, setting a new record. Attacks on crypto infrastructure, like stealing private keys and seed phrases or compromises of front-end software, accounted for over 80 percent of the funds stolen in 2025's first half. Trump housing advisor tells CNBC about crypto mortgage plan. Bill Pulte, the director of the Federal Housing Finance Agency, joined CNBC's "Money Movers" on Friday to discuss the plan he released this week to have Fannie Mae and Freddie Mac count crypto as a federal mortgage asset. Senate targets end of September for crypto bill. Senator Tim Scott, chairman of the Senate Banking Committee, said at an event on Thursday that legislation to establish rules for U.S. crypto markets will be finished by the end of September.

Sen. Tim Scott says crypto market structure bill will be done by end of September: CNBC Crypto World
Sen. Tim Scott says crypto market structure bill will be done by end of September: CNBC Crypto World

CNBC

time18 hours ago

  • Business
  • CNBC

Sen. Tim Scott says crypto market structure bill will be done by end of September: CNBC Crypto World

On today's episode of CNBC Crypto World, shares of crypto miner Core Scientific continued to climb for a second day following reported buyout talks with AI infrastructure giant CoreWeave. Plus, Sen. Tim Scott shares a timeline for a bill establishing rules for U.S. crypto markets. And, Ric Edelman, founder of the Digital Asset Council of Financial Professionals, explains why he's calling for financial advisors to allocate up to 40% to crypto in portfolios.

At 7th Annual VISION Conference, DACFP Founder Ric Edelman Calls for Crypto Allocation of Up To 40%
At 7th Annual VISION Conference, DACFP Founder Ric Edelman Calls for Crypto Allocation of Up To 40%

Yahoo

time11-06-2025

  • Business
  • Yahoo

At 7th Annual VISION Conference, DACFP Founder Ric Edelman Calls for Crypto Allocation of Up To 40%

Advocates a minimum 10% crypto allocation for all clients, and declares traditional 60/40 model "obsolete" ARLINGTON, Texas, June 11, 2025 /PRNewswire/ -- At the 7th Annual VISION conference this week, Digital Assets Council of Financial Professionals Founder Ric Edelman delivered groundbreaking portfolio allocation recommendations that fundamentally challenge the traditional investment approach used by millions of financial advisors. In his first public presentation of these guidelines, Edelman called for advisors to allocate a minimum of 10% in crypto for conservative portfolios and as much as 40% for aggressive accounts, declaring that the traditional 60/40 stock-bond allocation model is obsolete. "The allocation model you're familiar with—stocks and bonds—must now be replaced by one featuring stocks, crypto, and bonds," Edelman told the audience of 150 independent financial advisors. "The correct allocation now is to place 70% to 100% of the client's portfolio into stocks and crypto, with no more than 30% in bonds, and potentially zero in debt securities." He added that moderate portfolios should have a 25% crypto allocation. Edelman's position represents a dramatic shift from his prior advocacy that investors should allocate "low single digits" to crypto, and he cited two fundamental forces as the basis for his shifting viewpoint: unprecedented human longevity and advancements in exponential technologies. He argued that most clients alive today will live to age 100 or beyond, requiring portfolios to last far longer than most investors anticipate, and that the continued growth of blockchain technology will propel its levels 5 or 10 times its current size by 2030. Central to Edelman's longevity thesis is the array of breakthrough medical technologies in recent years, including cracking the human genome, CRISPR gene editing technology, focused ultrasound, and the emerging human cell atlas. Scientists project that individuals alive in 2030 will likely live past age 100, fundamentally altering today's retirement planning assumptions. "We've got to update the 60/40 glide path," Edelman explained. "You need a larger equity exposure, and for far more years, because of extended levels of longevity." This unprecedented demographic shift coincides with an equally unprecedented growth in exponential technologies. Edelman detailed how massive new markets will emerge over the next few years, displacing traditional sectors, and showed projections revealing that blockchain technology alone will grow from $176 billion today to $3 trillion by 2030, with tokenization reaching $16 trillion and bitcoin achieving $19 trillion in market value, a nearly 7x increase from today. Edelman's allocation model comes as institutional crypto adoption reaches unprecedented levels. Recent DACFP surveys show a 70% increase in financial advisors planning to recommend crypto, rising from 21% in December 2023 to 35% in March 2024. But among advisors already recommending crypto allocations, 87% suggest allocations of less than 5%, with the most common recommendation being 2%. Edelman's significantly higher allocation target reflects dramatically improved regulatory clarity and institutional engagement in crypto. The Trump administration and Congress's pro-crypto stances have reversed the restrictions of the Biden administration, with all the Biden-era prohibitions reversed. The result is that banks can now trade, custody, and lend against crypto – setting the stage for massive engagement by the banking community. Additionally, more than 1800 public companies have invested in the bitcoin ETFs holdings since their debut in January 2024, and 90 public companies hold bitcoin in their treasury reserves. "If every investor who owns traditional assets allocates just 1% to bitcoin, bitcoin's price would be $500,000," Edelman said. "A 10% allocation would put it at $5 million" – a figure predicted by Strategy's Michael Saylor. Financial advisors now have dozens of ways to invest in crypto, Edelman noted, including bitcoin and Ethereum ETFs, VC and hedge funds, crypto equities, bitcoin mining stocks and even IRA and 401(k) plans, as well as Separately Managed Accounts available from major custodians. "Bitcoin's 16-year track record shows that portfolios with bitcoin outperform portfolios that lack it, generating higher returns and lower risk," Edelman said. "All the classic Modern Portfolio Theory statistics improve with bitcoin, including the Sharpe and Sortino ratios, standard deviation, max drawdown." Edelman encouraged the advisors to continue learning about digital assets so they can make informed recommendations to their clients. He noted that thousands of financial advisors have already obtained the FINRA-listed professional designation, Certified in Blockchain and Digital Assets (CBDA), and enrollments are at an all-time high. About DACFPFounded by Ric Edelman, the Digital Assets Council of Financial Professionals is the leading provider of crypto education. DACFP connects the financial services industry and digital assets communities with leading experts via live and online events, webinars, blogs, and other educational content. Its flagship program, the FINRA-listed Certified in Blockchain and Digital AssetsSM, is the first and largest certification program of its kind—an online self-study program featuring a world-class faculty and 18 Continuing Education credits. Thousands of financial professionals from 37 countries have enrolled. View original content: SOURCE Digital Assets Council of Financial Professionals

JPMorgan Said to Allow IBIT as Collateral, Boosting Crypto
JPMorgan Said to Allow IBIT as Collateral, Boosting Crypto

Yahoo

time05-06-2025

  • Business
  • Yahoo

JPMorgan Said to Allow IBIT as Collateral, Boosting Crypto

JPMorgan Chase will begin accepting cryptocurrency investments, including BlackRock's iShares Bitcoin Trust (IBIT), as collateral for some loans, according to a published report, further legitimizing the biggest cryptocurrency as a mainstream store of wealth. JPMorgan, the biggest U.S. bank, will permit trading and wealth-management clients to put up crypto-linked assets to back some loans, according to unnamed sources cited in a Bloomberg News story. In some cases, crypto will be treated evenly alongside stocks and other assets when evaluating a potential client's creditworthiness, the story said. Such a plan further solidifies mainstream acceptance for Bitcoin, the No. 1 cryptocurrency whose value is backed not by a physical asset but with computer code, scarcity and trust imbued by fans and users. It's also somewhat of an about-face for JPMorgan, which has issued no crypto-supported ETFs and whose CEO, Jamie Dimon, has complained of crypto's potential for fraud and once referred to it as a fad like a 'pet rock.' 'JPM's policy changes regarding Bitcoin are proof that there is so much corporate, sovereign, institutional and retail demand for this new asset class that Bitcoin is now mainstream,' said Ric Edelman, founder of the Digital Assets Council of Financial Professionals and member of the editorial advisory board. Investors are fully embracing IBIT, the world's biggest crypto ETF, which is among the fastest-growing funds, in terms of assets, that's ever been launched. Launched in February 2024, it's among the 25 largest U.S. ETFs, with its $70 billion in assets fueled by $11.2 billion of net inflows and 12% in market gains so far this year. IBIT Fund Flows—Source: Factset Some market gains followed the election of President Donald Trump, whose campaign was financially and vocally supported by crypto enthusiasts. While Trump has fully embraced crypto, his launching of digital coins and Trump Media & Technology Group Corp.'s plan to issue a Bitcoin-linked ETF have raised ethical issues that may dull the glimmer of legitimacy Bitcoin has achieved. 'This certainly adds to the legitimacy of the asset,' Luke Nolan, senior research associate at London-based Coinshares, said in an email. 'A Bitcoin ETF is now being treated much like any other equity/stock, which can be borrowed against. Its place in a 'normal' portfolio is strengthening, and this is an important step for it.'Permalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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