Ric Edelman, creator, and co-founder of Edelman Financial Services, LLC, has invested in Bitwise Asset Management and will serve as an advisor to the company, which is credited for creating the first cryptocurrency index fund in the world.
Edelman Bullish on Bitcoin
In an interview on CNBC’s Fast Money, Edelman kicked off the session by stating that he is bullish on Bitcoin. The renowned financial advisor and author said:
“I am bullish on it because Bitcoin is now ten years old and is a $200 billion market in crypto total. Bitcoin is about 40 percent of that.”
Edelman also went on to say that the main reason why some financial advisors are not recommending the cryptocurrency to their clients is that they do not know much about Bitcoin. He stated that his goal is to change it all and “help raise the bar of awareness.”
Edelman’s remarks should not be taken lightly as they could be the reason why crypto adoption hasn’t happened as fast as crypto enthusiasts would want for the decade-old emerging market.
He further mentioned that cryptocurrencies are an asset class and just as good a store of value as precious metals and some of the earth’s resources.
Just like most interviews about cryptocurrencies this year, Edelman addressed the market’s regulatory environment and how positive regulation could allow the market to grow even bigger. He pointed out that the crypto market is as good as unregulated and resembles the Wild West. As such, financial advisors are reluctant to recommend their clients to venture into the Wild West.
He alluded that fraudulent activities dominate the market but that the day will come when the US Securities and Exchange Commission (SEC) will approve a Bitcoin ETF, and everything will change.
SEC, whose job is to protect American investors from investment fraud and scams, requires several issues to be cleared before approving a Bitcoin ETF. Edelman praised SEC for doing its job but is confident that the industry will put its house in order and make it impossible for the securities regulator to disapprove a Bitcoin ETF. Edelman said that the approval could happen anytime, be it in two months’ or two years’ time.
In July, SEC rejected an application for a Bitcoin ETF by the Winklevoss twins. However, a Bitcoin ETF is tipped to be a game changer as it will allow more institutional investors to enter the market.
More Institutional Investors Entering the Market
It is surprising that Bitcoin and the entire market are experiencing a bear trend since the beginning of the year, and some critics have claimed that the bubble has finally burst.
However, despite the bubble claims, stories of market manipulation, and outrageous heists, the crypto market is growing in terms of institutional investors entering the market. On July 16, Bitcoin spiked by more than five percent after it emerged that BlackRock, one of the largest asset managers in the world with more than $6 trillion in assets under management, explored the cryptocurrency space.