Morgan Stanley alone manages roughly $7 trillion in client assets. If its advisers shift even 3% of that into Bitcoin, the math gets staggering fast.
That scenario sits at the heart of what financial adviser Ric Edelman calls a potential “flywheel effect” — a chain reaction of institutional money that could send Bitcoin soaring past $150,000 before 2026 ends.
Related Reading
Wall Street Is Waiting For A Green Light
Edelman laid out the argument during a recent appearance on the Milk Road podcast with host John Gillen. He said traditional financial firms have largely stayed on the sidelines not because of disinterest, but because of regulatory uncertainty.
Once the Clarity Act passes, he said, that changes. Large brokerages, wealth managers, and fund companies would be free to move — and Edelman believes many are ready to do exactly that.
Morgan Stanley has already told its advisers to begin adding small crypto positions to client portfolios. Other Wall Street firms are watching closely.
The ripple effect, Edelman argued, could be enormous. Rising prices pull in more investors. More investors push prices higher.
That cycle feeds itself, and the result could be a rally unlike anything the crypto market has seen before. He also said his longer-term target remains $500,000 per Bitcoin before the decade closes.
Why The 60/40 Portfolio Is Losing Ground
Much of Edelman’s case connects to a broader shift in how he thinks retirement investing should work. For decades, the standard advice pointed investors toward a 60/40 split — 60% stocks, 40% bonds — with the bond share growing as retirement approached.
Edelman says that model was built around a world where people died in their mid-80s. That world is fading.
His research with institutions including the Stanford Center on Longevity and MIT AgeLab points to a future where living to 100 becomes common.
Under traditional strategies, many of those people would run out of money. His answer is an 80/20 model, keeping 80% in equities and growth assets well into old age.
Related Reading
Within that 80%, he said at least 10% belongs in crypto. Younger investors with higher risk tolerance, he suggested, could go as high as 40%.
Edelman did not push a single coin. Bitcoin remains the dominant choice, but he acknowledged the growing role of Ethereum and Solana.
Some investors use a market-cap weighted approach, putting more into Bitcoin while 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
