Ric Edelman Says Crypto Should Now Take Up to 40% of Portfolio, Abandoning 60/40 Model

Ric Edelman increased his crypto allocation guidance from 1% in 2021 to as much as 40% in 2025.

He cited longer life expectancy and outdated 60/40 portfolios as reasons to adopt crypto in long-term strategies.

Bitcoin’s uncorrelated returns and rising ETF inflows support its growing role in modern investment portfolios.

Financial advisor Ric Edelman has revised the cryptocurrency portfolio percentage he thinks investors should allocate to their portfolios, raising it to 10%-40% in digital assets. According to a post by Bitcoin Archive, this is a harsh contrast to his advice in 2021, where he recommended only 1% allocation to his guest in the book out called The Truth About Crypto. The adjusted forecast follows the fast-paced changes in the market infrastructure, product offering, and general acceptance of cryptocurrency assets such as Bitcoin.

According to the leader of Digital Assets Council of Financial Advisors Edelman, the major doubts about crypto have been dissolved. He cited government regulation, institutional adoption, and technological stability as some of the factors that have worked in favor of Bitcoin becoming a possible functioning asset of the main stream. He followed up that the previous issues of bans or technological failures are no longer issues now at the market.

Shift Away from the Traditional 60/40 Model

In his interview with CNBC, Edelman explained the move away from the longstanding 60% stocks and 40% bonds portfolio model. He said the traditional structure no longer serves modern investors due to longer life expectancies. As a result, investors need higher returns and longer equity exposure to meet future needs. The rise in U.S. life expectancy, from 47 years in the early 1900s to over 85 years today, has added pressure on portfolio growth strategies.

Edelman noted that a 60-year-old investor today may have the same investment horizon as a 30-year-old in the past. With that in mind, he said bonds no longer provide the necessary returns for long-term growth. He emphasized that crypto’s uncorrelated performance could fill that gap and enhance portfolio diversification.

Crypto Gains Role as Portfolio Enhancer

Edelman pointed out that Bitcoin does not follow the same price movements as traditional asset classes. He said this independence makes it a useful tool for improving portfolio efficiency under modern portfolio theory. As part of this shift, Edelman said crypto should be considered alongside increased equity holdings, not just as a speculative play.

Institutional participation in crypto has also expanded. Spot Bitcoin ETFs have attracted billions in 2025, reflecting deeper interest from long-term investors and advisors. Edelman said these inflows show growing confidence in the sector and support broader allocation strategies.

He also mentioned projections from analysts predicting Bitcoin to reach $150,000 to $250,000 by year-end. He said some believe the price could rise to $500,000 by 2030. According to Edelman, these figures align with crypto’s growing role in investment planning, given its historical growth and future demand potential. The advisor acknowledged the change in his position over four years. He attributed it to how much the asset class has developed since 2021.