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 seen in the industry, what he called "the evolution of crypto in the past four years," he said.
Four years ago, Edelman said, 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."
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.
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