Edelman Backs 10-40% Bitcoin Allocation as '60/40' Portfolio Strategy Fades

Ric Edelman, founder of Edelman Financial Engines, has increased his recommended Bitcoin allocation from 1% to 10-40%. Speaking at the Bitcoin Treasuries Conference in Manhattan on September 28, he argued that investors need more exposure to growth-oriented assets due to increasing longevity. Traditional portfolio construction's '60/40' split between stocks and bonds is no longer suitable, according to Edelman.

Edelman believes a 10% allocation for conservative investors, 25% for moderate portfolios, and 40% for aggressive ones would be more effective in achieving long-term outcomes. He bases this on Bitcoin's historical performance as the best-performing asset class since its inception. The financial advisor sees no reason why the long-term trend must end.

Edelman also predicts that Bitcoin could reach $500,000 by 2030, and a 2% allocation of global assets to BTC could imply a price around $1 million per coin. He notes that institutional adoption, capital inflows, and maintaining its role as a scarce global asset are crucial for this projection to come true.