Ric Edelman Recommends 10%–40% Crypto Asset Allocation

Ric Edelman, founder of Edelman Financial Engines, advocates a significant shift in crypto asset allocation, urging conservative investors to allocate at least 10%, with moderate to aggressive portfolios increasing allocations up to 40%. Dismissing the traditional 60/40 stocks-to-bonds model as outdated, Edelman highlights superior risk-adjusted returns and Sharpe ratios for portfolios that include Bitcoin (BTC). He also notes a clearer regulatory environment and mainstream financial institutions offering crypto custody. Institutional interest remains robust: CoinShares reported $2.7 billion net inflows into digital asset investment products over the week ending June 27—marking an 11th consecutive week of positive flows—with $2.2 billion into Bitcoin products and $429 million into Ethereum (ETH) products. On the equities side, Circle’s IPO performed strongly, while crypto-related stocks such as Coinbase (COIN), MicroStrategy (MSTR), and Robinhood (HOOD) have gained 37%, 34%, and 134% year-to-date, respectively. Kraken’s rollout of tokenized stocks and ETFs for non-US investors further underscores growing market infrastructure. Edelman’s report signals a transformative phase for crypto adoption. Financial advisors are encouraged to rethink their crypto allocation strategies to capture emerging growth and meet evolving client demands in a bullish market environment.