$7.4 Trillion Global Influx! Asset Management Financial Advisor: Bitcoin Will Rise to $420,000 in 10 Years

Ric Edelman, founder of Edelman Financial Services, a U.S. asset management company managing $250 billion in assets, stated that Bitcoin's price will rise to $420,000 in 10 years. He explained that if 1% of the world's $738 trillion in financial assets were allocated to Bitcoin, it would result in a $7.4 trillion influx of funds.

In a commentary article published by Think Advisor, Edelman discussed how a substantial planned allocation by financial advisors could drive Bitcoin's price. He described, "My analysis shows that in 10 years, Bitcoin's price will reach $420,000, and I arrived at this number through simple arithmetic."

He cited a survey by Franklin Templeton, showing that over 75% of independent registered investment advisors (RIAs) plan to allocate 2.5% of their assets to Bitcoin.

Independent registered investment advisors manage $8 trillion, equivalent to a $150 billion influx into cryptocurrency.

He also speculated that additional allocations might come from family offices, pension funds, endowment funds, and other institutional investors.

This financial advisor pointed out that the total global financial assets amount to $738 trillion, a figure derived by adding the values of global stock markets, debt markets, real estate markets, gold markets, cash markets, Bitcoin, and other assets as of December 31.

This unique supply constraint underpins his analysis of Bitcoin's potential price increase.

Emphasizing Bitcoin's fixed supply of 21 million coins, he stated, "If all the advisors, investors, and institutions managing these assets allocated just 1% of their clients' portfolios to Bitcoin, the total influx would be $7.4 trillion."

"Of the 21 million Bitcoins that will ever exist, 19.4 million are currently in circulation, meaning that the influx per Bitcoin would be about $378,000."

Edelman continued, "Adding this to Bitcoin's current price, you get Bitcoin's future price, approximately $420,000."

In December 2023, he revealed in an interview on CoinDesk's podcast Unchained that the majority of financial advisors were waiting for the launch of a Bitcoin spot ETF. Subsequently, the U.S. approved the listing and trading of a Bitcoin spot ETF on January 11, 2024.

At that time, he noted, "In our survey, 77% of financial advisors said they were waiting for a Bitcoin spot ETF so they could offer such products to clients. Every institution's compliance department would agree to offer this product because it's just an ETF, like any other thematic ETF."

"We use ETFs to invest in computer technology, oil and gas, gold and precious metals, emerging markets, and now this type of ETF is to invest in blockchain and digital assets."

Edelman disclosed that according to the company's survey, as many as 47% of financial advisors hold Bitcoin, understanding it as an innovative technology with the potential for substantial investment returns, leading them to make personal investments.