The crypto world has evolved significantly over the past 18 months. Bitcoin, once treated with suspicion, is now enjoying wider acceptance among regulators and institutional investors.
Spot bitcoin and ethereum exchange-traded funds (ETFs) are now regulated by the US Securities and Exchange Commission. Coinbase has joined the S&P 500. Circle, a leading stablecoin provider, has gone public. Meanwhile, the Trump administration has shown strong support for digital assets.
With bitcoin trading above $1,00,000 and US lawmakers drafting clearer crypto rules, more investors are reconsidering digital assets. But whether to invest depends on your risk appetite, time horizon and understanding of the space.
Tyrone Ross, founder of financial planning firm 401 Financial, offered a reality check: “We have a long way to go before you should be YOLO-ing (YOLO: you only live once) your way into crypto.”
Many financial advisers have been reluctant to recommend crypto due to its extreme price swings, lack of regulation, and opaque valuation. Unlike shares, which can be analysed based on tangible business models, bitcoin is viewed as a store of value — its price determined solely by market demand.
That caution was justified, said Ric Edelman, founder of Edelman Financial Engines and of the Digital Assets Council of Financial Professionals. But now, he argues, those who champion diversification across asset classes should consider at least a small exposure to digital assets.
“They ought to be cautious. But being cautious doesn’t mean abstinence,” he said. “We’ve seen bitcoin hit record highs and institutional investors entering for the first time.”
Several years ago, Edelman recommended allocating just 1% of a portfolio to bitcoin — a level low enough to avoid serious harm if the asset collapsed. Conversely, if bitcoin soared, the upside could be significant.
Despite current high prices, Edelman believes bitcoin has room to grow due to its fixed supply and increasing demand.
Edelman advises newcomers to start with bitcoin — “by far the largest digital asset” and the top choice among institutions. It stands apart from other cryptocurrencies, which are often tied to specific commercial use cases and carry more uncertainty.
However, buying and securely storing bitcoin on your own can be technically challenging and risky. “Scams are a big issue in this space,” warned Ross.
He and Edelman both recommend starting with a bitcoin ETF (exchange-traded funds) regulated by the SEC — a simpler and safer route for most investors.
Not all experts are convinced. In a March note to clients, TIAA’s chief investment officer Niladri Mukherjee acknowledged the positive momentum around crypto adoption and ETFs but warned that the asset class remains poorly understood.
He noted that the industry is still “quite opaque and unregulated”, and advised individuals to conduct thorough due diligence before investing.
Even before that, investors should check their own emotional readiness. Edelman said: “Those who cannot emotionally tolerate volatility... are likely to sell when prices are low.”
Ross suggested a small experiment: invest the cost of a nice dinner, then observe how you feel over the coming months. “Track it, read about it, understand its ebbs and flows.” Once comfortable, you might begin small monthly contributions — but only with money you can afford to lose.
Another expert recommends keeping crypto allocations small enough that they wouldn’t significantly affect your portfolio if they went to zero. She also advised sticking with established players that offer both sound infrastructure and transparent information.
Trent Porter, a certified financial planner and chartered accountant, remains wary. “My core advice remains unchanged: crypto exposure should match an investor’s personal risk tolerance and capacity, with a maximum allocation of 5% for most people. Regulatory risk may have eased, but market risk is still very real — and regulation can change quickly.”
