Ric Edelman, founder of the financial advisory firm Edelman Financial Engines, described Bitcoin (BTC) and crypto assets as an “entirely new and different asset class” that has nothing to do with mainstream staples such as stocks, bonds, real estate, oil or commodities to name just a few.
In an interview with Yahoo Finance on Wednesday, the financial advisor described Bitcoin and crypto as “the first really new asset class in around 150 years”. According to Edelman, there has been no more innovative asset class such as cryptocurrencies since the gold market.
During the discussion, Edelman revealed that he helped educate financial advisors about the need to be more open-minded about crypto as a viable portfolio diversifier.
As Cointelegraph previously reported, a recent survey by business research firm Opinium showed that over 90% of 200 independent financial advisors surveyed in the UK were against crypto investments for their clients.
While Edelman did not specifically respond to the Opinium poll, describing the reluctance of Independent Financial Advisors (IFAs) as biased, saying:
“Most finance professionals have been in business for a long time […] But the more experience and talent you have, the more difficult it is to find your way around Bitcoin. “
Given that portfolio diversification and rebalancing are popular strategies for IFAs, BTC should be an obvious choice, according to Edelman.
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Edelman went on to argue that financial advisors only need to look at the technological basics of cryptocurrencies to see that cryptos aren’t in the same roster as tulips or beanie babies.
For Edelman, crypto and blockchain technology in general is the “most influential commercial innovation since the development of the Internet itself”.
Back in 2019, the financial advisor noted that an exchange-traded Bitcoin fund was inevitable in the US.