Markets Daily Crypto Roundup: Ric Edelman on a 10-40% Crypto Allocation

Released July 21, 2025 | Host: CoinDesk

In this insightful episode of Markets Daily Crypto Roundup, hosted by CoinDesk, financial expert Ric Edelman, founder of the Digital Assets Council of Financial Professionals, delves into the evolving landscape of cryptocurrency investments. Edelman discusses the transformative regulatory developments, the burgeoning prominence of stablecoins, his significant shift in crypto portfolio recommendations, and the future prospects of Bitcoin, the Metaverse, and tokenized financial instruments.

1. Regulatory Developments: The Genius Act and Its Impact on Stablecoins

[00:40]
The conversation kicks off with the landmark signing of the Genius Act by President Trump, a pivotal legislation that sets the regulatory framework for stablecoins.

Ric Edelman remarks, “The Genius Act, which provides the rules of the road for stablecoins, was the low hanging fruit of crypto... This is the first major step in that direction. And there are two other bills that are coming right on its heels...” [01:06]

Jen Senasi probes into the significance of this act, and Edelman underscores its unanimous support across political and financial spectrums. He draws an analogy to the early days of automobiles, emphasizing the necessity of regulation following innovation to ensure consumer protection and mainstream adoption.

2. The Rise of Stablecoins: Consumer and Investor Perspectives

[03:35]
The discussion transitions to stablecoins, traditionally popular within decentralized finance (DeFi), but now gaining mainstream traction. Edelman breaks down the dual facets of stablecoins:

• Consumer Use:
  Edelman explains, “Stablecoins let you keep the money in your account... It's growing. We are now going to see banks offering their own stablecoins... making it cheaper for you to shop.” [04:03]

  He highlights the benefits for consumers, including seamless transactions, reduced fees, and enhanced financial security, especially in economies with unstable currencies.

• Investor Opportunities:
  Addressing the investment side, Edelman notes, “The best way I can phrase this for you, Jen, is to note this. When's the last time you saw any industry begging to be regulated?... Adding to your diversified crypto portfolio, companies that are creating and operating or deploying stablecoins is a great way to add to your crypto diversification.” [04:03]

  He emphasizes investing in companies like Circle and Tether, which have demonstrated substantial profitability through stablecoin operations.

3. Ethereum's Resurgence in Value

[07:12]
Edelman shifts focus to Ethereum (ETH), which has surged by 27% in the week leading up to the episode. He attributes this rise to the integral role stablecoins play on the Ethereum blockchain.

“... if you're bullish about stablecoins, you are by definition saying that you're bullish about Ethereum. And I think the marketplace has recently begun to wake up to that fact, which is why we've seen Ethereum skyrocket in value...” [07:28]

Edelman predicts that as stablecoin adoption grows, Ethereum's value will continue to appreciate, reinforcing its position in the crypto ecosystem.

4. Portfolio Allocation Shift: From 1% to 10-40% in Crypto

[09:10]
A pivotal segment of the podcast centers on Edelman's transformation in investment recommendations. Reflecting on his 2021 advice of allocating 1% of a portfolio to Bitcoin, he now advocates for a substantial 10-40% allocation to crypto.

“My book... in that book I said that you should most mere mortals allocate 1% to Bitcoin... but now... we have an administration that is completely supportive of crypto... it's very early. And the risk of bitcoin today is not nearly as high as it was four or five years ago.” [09:41]

Edelman elaborates on the changed regulatory and institutional landscape, citing increased support from government bodies and the integration of crypto services by traditional financial institutions as catalysts for this shift.

5. Bitcoin's Growth Projections

[12:48]
Edelman presents a bold forecast for Bitcoin, projecting a $500,000 price point by the end of the decade.

“... if everybody allocates just 1% of our portfolio to crypto, that's $8 trillion added into Bitcoin turns Bitcoin into $500,000 per coin. It's just basic arithmetic.” [13:07]

He contrasts his projection with more optimistic estimates, such as $5 million per Bitcoin with a 10% allocation, aligning with views like those of Michael Saylor.

6. The Metaverse and Tokenization of Real Assets

[16:16]
Edelman delves into the Metaverse, arguing for its resurgence and significant economic impact through the tokenization of real-world assets (RWA).

“The Metaverse is... about tokenization and the tokenization of what we call RWA... you can tokenize [a] building, trade them online... Just as you create shares that represent ownership of a company.” [16:56]

He cites examples like Nike and Burberry successfully monetizing digital goods within virtual environments and anticipates broader adoption facilitated by advancements in augmented reality (AR) and virtual reality (VR) technologies.

7. Future of ETFs: Transition to Tokenized Stocks

[21:00]
Addressing the evolution of financial instruments, Edelman predicts the obsolescence of traditional Exchange-Traded Funds (ETFs) in favor of tokenized stocks by 2030.

“... tokens let you trade 24/7/365 with no intermediary involved. It's virtually free. It's totally transparent.” [21:16]

He envisions a future where asset management is revolutionized through tokenization, enhancing liquidity, transparency, and accessibility, with major asset managers like Franklin Templeton and BlackRock already pioneering this transition.

8. Conclusion: Embracing Crypto as a Mainstream Asset Class

[23:29]
In wrapping up, Edelman urges investors to educate themselves about crypto, highlighting it as the fastest-growing asset class with unparalleled outperformance potential.

“Learn about it because it's the fastest growing asset class. I believe it will continue to be the best outperformance forming asset class for the next several years.” [23:46]

He promotes resources available through the Digital Assets Council of Financial Professionals, including white papers and certification programs, to empower investors in navigating the crypto landscape.

Final Thoughts

Ric Edelman's comprehensive analysis underscores a transformative period in cryptocurrency and digital assets. From regulatory advancements and stablecoin adoption to significant portfolio allocation shifts and innovative financial instruments, the episode encapsulates the dynamic evolution of crypto as a mainstream investment avenue. Edelman's projections and insights provide a compelling case for embracing crypto's potential, urging investors to stay informed and proactive in leveraging this burgeoning asset class.