Wall Street’s New Mandate: Financial Advisors Demand 40% Institutional Crypto Allocation
Forget dipping toes—the big money players are being told to dive headfirst into crypto. Financial advisors are now pushing institutions to allocate a staggering 40% of portfolios to digital assets. Here's why the old guard is sweating.
The 40% Gamble (or Genius Move?)
Traditional 60/40 portfolios? Officially outdated. With Bitcoin eating bonds for breakfast and Ethereum flirting with ATHs, advisors argue crypto isn’t optional—it’s mandatory. 'Diversification' now means holding more than just your banker’s golf-club stock picks.
Institutions: Late to the Party, Early to the Exit?
Pension funds and endowments are finally listening—just as retail traders start taking profits. Classic Wall Street timing: buy high, panic low, then blame 'market volatility.' But with yields elsewhere collapsing, even the skeptics are running out of excuses.
The Fine Print (Where the Devils Hide)
Of course, nobody mentions the 40% target might include 'crypto-adjacent' ETFs, tokenized real estate, and that NFT of a monkey their intern insisted was 'a store of value.' Hey—if it’s on a blockchain, it counts, right?
One thing’s clear: the institutions that mocked crypto in 2020 are now racing to FOMO in at 2025 prices. Maybe they’ll finally learn—after the next correction.
Edelman Advises Crypto Investment
Traditional finance and the crypto industry have had a rocky relationship over the years, but it’s improving. Corporations worldwide are following MicroStrategy’s playbook, buying Bitcoin and other assets in droves.
Today, prominent ETF analysts noted that one of TradFi’s biggest advisors is advocating heavily for crypto investment:
.@ricedelman, who founded $300bil investment advisory firm Edelman Financial Engines…
Recommends *40%* crypto allocation for aggressive investors.
10% for conservative.
Says owning crypto is no longer a speculative position; failing to do so is.
Look at these takeaways. pic.twitter.com/OB5N5c6cAQ
Edelman’s recommendations shocked many casual observers. He essentially claimed that crypto has been too valuable for clients to ignore and that fund managers have a fiduciary responsibility to invest in it.
Since when is a 10% crypto allocation considered a “conservative” position, especially for hedge funds?
Still, many crypto-native readers may wonder what Ric Edelman’s relevance actually is. Eric Balchunas, another prominent ETF analyst, was apparently floored, comparing Edelman’s message to BlackRock’s famous turn toward crypto:
“Holy smokes. This is the arguably the most important full-throated endorsement of crypto from TradFi world since Larry Fink. This guy is Mr. RIA (Registered Investment Advisor). He manages $300 billion for 1.3 million clients and tops the Barron’s list of Top Financial Advisors regularly,” he claimed.
This is extremely high praise. BlackRock wasn’t pro-crypto for years, but its bitcoin ETF became one of its best-performing products. So, it’s not new that major financial advocates have changed their stance towards digital assets.
Meanwhile, Edelman’s fund manages $300 billion. So, could he realistically direct 25% or more to funnel into Bitcoin investment? If he commits to this strategy wholeheartedly, how many competitors could follow it?
If nothing else, the markets are already primed for a surge of crypto investment. Crypto stocks are outperforming most altcoins, significantly impacting the DeFi ecosystem.
Skeptical voices are also growing in number, so a top-level sign of faith could keep the momentum steady.
However, this momentum might not apply to altcoins. Balchunas claimed that Edelman was trying to present a simplified message by discussing crypto investment rather than Bitcoin specifically.
Objectively speaking, Bitcoin represents the vast majority of corporate purchases. Nearly 90% of fund investments are in BTC, and it’s liable to remain the preferred asset for now.
