Investors and advisors can't ignore crypto anymore, according to Ric Edelman, founder of Edelman Financial Engines.
"It's the first new invention of an asset class in 170 years — the last new asset class was the discovery of oil in the 1850s," he told CNBC Pro at the Digital Assets Council of Financial Professionals' Vision conference in Austin, Texas.
"We need to recognize that in order to have a truly diversified portfolio, we need to have exposure to every asset class," he added.
"That means advisors need to rethink their notion of portfolio diversification and acknowledge that crypto — like it or not, understand it or not — belongs in a diversified portfolio on a long-term basis."
Edelman said to stick to bitcoin and ether — "the Pepsi and Coke of crypto for most folks" — and that you "don't need a lot of it," recommending a low, single-digit allocation as a percentage of a portfolio.
Persons:
Ric Edelman, Edelman, DACFP
Organizations:
Edelman, CNBC Pro, Digital Assets, Financial Professionals, Pepsi, Coke
Locations:
Austin , Texas