Founder of $291B Asset Manager Says Bitcoin Will Hit $420k by 2030

Ric Edelman, the founder of $291 billion asset management firm Edelman Financial Services, has thrown his thoughts on bitcoin (BTC). In an appearance on Wealth on Tuesday, he stated that the leading cryptocurrency would reach $420,000 by the end of the decade.

Edelman based his predictions on simple arithmetic, stating that Bitcoin would hit $420,000 if just 1% of the global wealth were invested in the digital currency.

“If you take a look at the world’s global assets, the value of the stock market globally, the bonds, the real estate market, the gold market, you just look at all the assets everybody owns, it’s about $740 trillion,” Edelman stated, adding that “If everybody who owns those assets were to simply allocate 1% to Bitcoin, we would have a market cap of $7.4 trillion that translates to 420 grand per Bitcoin.”

Edelman believes his “simple arithmetic” is possible, and everybody can allocate 1% of their portfolio to buy Bitcoin. The largest cryptocurrency has recently seen massive adoption, with investment banks, pensions, and hedge funds declaring exposure to Bitcoin through its spot exchange-traded fund (ETF) products.

The Scramble for Bitcoin Erupts

The exposure to Bitcoin seen in quarterly reports by several financial firms has shown how quickly institutions are turning to the crypto asset. The approval of the spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) in January has paved the way for institutional investors to gain exposure to Bitcoin.

About 330 firms have already declared exposure to Bitcoin via BlacRock’s ETF product, IBIT. Data compiled also shows that about 50 firms have bought Cathie Wood’s Ark21 Bitcoin ETF, ARKB. 

One of the prominent exposures is the State of Wisconsin Investment Board’s purchase of IBIT and Grayscale’s GBTC, worth $162 million. JPMorgan, whose CEO constantly publicly discredits Bitcoin, also declared exposure to the asset’s ETF product.

Expect More ETFs: Edelman

The founder of the Digital Asset Council of Financial Professionals further stated that he sees the SEC approving many more ETFs. 

Among others, Edelman noted that he sees an Ether ETF before the end of the year. He, however, sees the SEC denying all Ether ETF applications this month, joining the bandwagon of analysts who have predicted such an event.

“Five years from now, there will be dozens, perhaps even hundreds of crypto ETFs,” Edelman said.