Morgan Stanley alone manages approximately $7 trillion in client assets. If the advisors shift even 3% of that into Bitcoin, the math becomes dizzyingly fast.
That scenario is at the heart of what financial advisor Ric Edelman calls potential “flywheel effect” – a chain reaction of institutional money that could steer Bitcoin rising above $150,000 before 2026 ends.
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Wall Street is waiting for the green light
Edelman explained the argument during a recent appearance on the Milk Road podcast with host John Gillen. He said traditional financial firms have largely remained on the sidelines, not because of disinterest, but because of regulatory uncertainty.
Once the Clarity Act passes, he said, that changes. Big brokers, asset managers and fund companies would be free to move — and Edelman believes many are willing to do just that.
Morgan Stanley has already instructed its advisors to add small crypto positions to client portfolios. Other companies on Wall Street are closely monitoring the situation.
The ripple effect, Edelman argued, could be enormous. Rising prices attract more investors. More and more investors are pushing prices up.
That cycle feeds on itself, and the result could be a rally unlike anything the crypto market has ever seen before. He also said his longer-term goal remains $500,000 per Bitcoin before the decade closes.
Why the 60/40 portfolio is losing ground
Much of Edelman’s argument relates to a broader shift in the way he thinks pension investing should work. For decades, the standard advice for investors pointed to a 60/40 split – 60% stocks, 40% bonds – with the share of bonds growing as retirement approached.
Edelman says this model is built around a world where people died in the mid-1980s. That world is fading.
His research at institutions such as the Stanford Center on Longevity and MIT AgeLab points to a future in which living to 100 becomes normal.
Under traditional strategies, many of these people would run out of money. His answer is an 80/20 model, where 80% of stocks and growth assets are retained into old age.
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Within that 80%, he said that at least 10% belongs in crypto. Younger investors with a higher risk tolerance could gain up to 40%, he said.
Edelman didn’t push a single coin. Bitcoin remains the dominant choice, but he acknowledged its growing role Ethereum and Solana.
Some investors use a market cap-weighted approach, putting more into Bitcoin and holding smaller positions in other assets.
Others prefer exposure through companies like Coinbase and Robinhood, which are tied to the growth of the broader crypto sector.
Featured image from Pexels, chart from TradingView