Ric Edelman Says RIAs Will Invest $150 Billion in Spot Bitcoin ETFs

News provided by

Digital Assets Council of Financial Professionals (DACFP)

Jan 11, 2024, 11:02 ET

Flows will occur over the next two to three years, according to acclaimed advisor

GREAT FALLS, Va., Jan. 11, 2024 /PRNewswire/ -- Ric Edelman, founder of the nation's largest RIA, said Independent Financial Advisors will invest $150 billion in spot bitcoin ETFs over the next two to three years, making these ETFs the most successful launch in ETF history.

"Our research shows that 77% of independent advisors plan to allocate an average of 2.5% of clients' portfolios to spot bitcoin ETFs," Edelman said. Since Independent Registered Investment Advisors collectively manage $8 trillion, that translates to $154 billion."

Edelman believes bitcoin's price will reach $150,000 within two years, a nearly 3x increase from its current price. Still, Edelman urges advisors to temper their enthusiasm because, he said, flows into the new ETFs, and increases in bitcoin's price, will not occur immediately.

"It's going to take time for asset flows to occur," Edelman said. "Firms need time to put these new ETFs onto their platform, and compliance departments need to establish policies governing their use. Advisors all need training, because most are unfamiliar with blockchain technology, and they don't know how to explain bitcoin to clients." Edelman created the Digital Assets Council of Financial Professionals in 2015 to teach advisors about crypto. Three years ago, DACFP launched the CBDA professional designation, an online course that allows advisors to become Certified in Blockchain and Digital Assets^SM.

"Advisors are also going to need time to tackle the big tactical questions," Edelman said. "Advisors have to determine which of their clients should invest in these ETFs, and determine the best allocation for them. Advisors need to decide how they'll communicate their recommendation to clients."

All this will take time, he said, and that's why he's encouraging advisors to have realistic expectations about the new spot bitcoin ETFs.

"In the long-term, I fully expect bitcoin's price to be in the low to middle six figures," Edelman said, "but it won't happen overnight. This makes bitcoin an outstanding addition to a long-term diversified portfolio, using all the traditional investment strategies you've mastered over the years, such as rebalancing, dollar cost averaging and tax-loss harvesting. But triple-digit gains instantly? Everyone needs to temper their enthusiasm."

DACFP has created a complete spot bitcoin ETF Toolkit for financial advisors. It includes a chart comparing all the ETFs so that advisors can easily decide which ones they want to add to their client portfolios. It's available free at dacfp.com/toolkit.

About DACFP
Founded by Ric Edelman, the Digital Assets Council of Financial Professionals is the leading provider of crypto education. DACFP connects the financial services industry and digital assets communities with leading experts via live and online events, webinars, blogs and other educational content. Its flagship program, the Certified in Blockchain and Digital Assets^SM, is the first and largest certification program of its kind—an online self-study program featuring a world-class faculty and 18 Continuing Education credits. Thousands of financial professionals from 37 countries have enrolled.

Contact for DACFP:
Ryan Graham, JConnelly, 862-777-4274
[email protected]

SOURCE Digital Assets Council of Financial Professionals (DACFP)