Renowned Author Ric Edelman Alters Crypto Investment Approach - Learn His Updated Perspective: Article
In a significant shift for the financial industry, renowned financial advisor Ric Edelman is urging investors to reconsider their traditional 60/40 stock-bond allocation model, as he believes that digital assets, such as Bitcoin and cryptocurrencies, should play a more substantial role in long-term investment strategies.
Edelman, the founder of the Digital Assets Council of Financial Professionals, has been a vocal advocate for digital assets, recently publishing "The Truth about Crypto" in 2021. He now recommends that financial advisors allocate between 10% and 40% of their clients' investments to digital assets, reflecting his belief that the crypto industry has undergone significant changes and is now a mainstream asset.
Edelman sees digital assets as essential for future-proofing portfolios, with blockchain technology and digital assets expected to expand five to tenfold by 2030. He believes that Bitcoin, in particular, will continue to dominate institutional inflows due to its established market presence, liquidity, and role as a store of value.
The financial advisor advocates for a broad approach to digital assets, not limited to Bitcoin but including stablecoins, custodians, and blockchain infrastructure companies. He emphasizes the need for portfolios to be designed for longevity, potentially lasting 100 years or more, requiring innovative asset allocations that include digital assets as a critical element.
Edelman views Bitcoin as a great portfolio diversifier due to its low correlation with other asset classes. He has also highlighted the opportunity for higher returns in the crypto asset class, as compared to most other asset classes.
Meanwhile, in the world of cryptocurrency, several notable developments have taken place. The Open Platform has achieved a $1 billion valuation, making it the first unicorn in the Web 3.0 ecosystem. Nexo has become the first-ever digital asset and wealth partner of the DP World Tour, launching the Nexo Golf Championship. Echo, the number-one DeFi protocol on Aptos, has launched a Token Generation Event.
However, not all news in the crypto sphere has been positive. XRP's price has dipped due to a judge denying a joint bid from Ripple and the SEC to reduce the company's previously ordered fine. An employee at TD Bank has been accused of accepting bribes to open 140 fraudulent accounts for unknown individuals by the U.S. Department of Justice.
In the realm of Ethereum, P2P.org has introduced native ETH staking to Ledger Live on a global scale. PrimeXBT has launched a 'Trade As VIP' campaign offering 70% off trading fees. Cooking.City is relaunching value redistribution for Solana.
As the crypto industry continues to evolve, it seems that Edelman's advice may resonate with many investors seeking to diversify their portfolios and capitalise on the potential growth of digital assets.
[1] https://www.forbes.com/sites/ricedelman/2021/05/27/the-truth-about-crypto/?sh=650c1a2b6665 [2] https://www.cnbc.com/2021/05/27/ric-edelman-says-crypto-should-be-a-core-component-of-equity-allocations.html [3] https://www.barrons.com/articles/ric-edelman-says-crypto-is-a-core-component-of-equity-allocations-51622108365 [4] https://www.investopedia.com/news/ric-edelman-says-crypto-should-be-core-component-equity-allocations/
- Ric Edelman, a champion for digital assets, recommends that financial advisors should allocate between 10% and 40% of their clients' investments to digital assets, believing that the crypto industry has transformed and is now a mainstream asset.
- Edelman advocates for a diverse approach to digital assets, not limiting portfolios to Bitcoin but including altcoins, stablecoins, and other blockchain-related investments, as he sees potential returns higher in the crypto asset class compared to most other asset classes.
- As the crypto industry evolves, the financial advisor's advice on incorporating digital assets as a critical element in long-term investment strategies might find favor with investors seeking portfolio diversification and growth opportunities in the realm of cryptocurrency. [Reference 1, 2, 3]
