Bigger bitcoin HODL: Time for 10% to 40% of portfolio in crypto, says financial advisor Ric Edelman

Edelman, who heads the Digital Assets Council of Financial Advisors, has been saying for some time the traditional 60-40 portfolio of stocks and bonds is outdated because people are living too long for it to work

Now, he says crypto bitcoin that have uncorrelated returns also need to factor to an even greater extent in portfolios of the future alongside much higher equity holdings later in life

Four years ago, financial advisor Ric Edelman went out on a limb in saying everyone should hold cryptocurrencies

Low single digits was his recommendation

In his "The Truth Crypto" book in 2021, Edelman said as low as a 1% allocation was reasonable

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 nology 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 main asset," he added

For sure, the more main crypto becomes, the more it will feature across investment portfolios

Has risen from 47 in the 1900s to 85 today, and is jected to potentially reach as high as 100 over the next 30 years if nological advances related to medicine ceed. "If you're a financial advisor and you had a 30-year-old client who was saving for their long-term future, you would tell them to put 100% of their money in stocks, because they have 50 years to go," said Edelman. "Today's 60-year-old is kind of yesterday's 30-year-old," he added. "You need to get better returns than you can get from bonds and you need to hold equities longer than ever before," Edelman said

And as that allocation model shifts away from the classic 40% bond allocation, he said crypto needs to play a much bigger role in. "Bitcoin prices don't move in sync with stocks or bonds or gold or oil or commodities," Edelman said

He added that investors are starting to recognize it as a "wonderful way to imve modern portfolio theory statistics. ""The crypto asset class offers the opportunity for higher returns than you're ly to get in virtually any other asset class," Edelman said

Edelman said, "That's a conservative estimate compared to what others are saying. " watch now15:1115:11Ric Edelman calls on financial advisors to allocate up to 40% to crypto in portfoliosCrypto WorldIn other crypto news of note on Friday:Crypto hacks hit a new record in the first half of the year

Trump housing advisor tells CNBC crypto mortgage plan

Bill Pulte, the director of the Federal Housing Finance Agency, joined CNBC's "Money Movers" on Friday to discuss the plan he released this week to have Fannie Mae and Freddie Mac figure out how to count crypto as a federal mortgage asset

Senate targets end of September for crypto bill

Senator Tim Scott, chairman of the Senate Banking Committee, said at an event on Thursday that legislation to establish rules for U

Crypto will be by the end of September

You can can catch more on these headlines in today's Crypto World episode above

Watch nowwatch now12:41Sen

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