The owner of the consulting company Edelman Financial Services, which manages $291 billion in assets, explained why the value of Bitcoin could rise to $420,000.

Ric Edelman believes that traditional international investors will try their best to diversify their portfolio. And if they all invest at least 1% of their funds in the first cryptocurrency, the size of the Bitcoin market will be an unprecedented $7.4 trillion. US spot exchange-traded funds (ETFs) linked to Bitcoin will help investors.

Investing in Bitcoin ETFs is similar to managing other asset classes, while reaching a much broader base of investors, the Edelman Financial Services executive knows.

“Cryptocurrency ETFs are incredibly cheap. They are 20-25% cheaper than assets on the Coinbase exchange or other crypto exchanges. Plus they are stored in a brokerage account. Bitcoin ETFs allow you to use traditional investment strategies like rebalancing and dollar-cost averaging. There are also tax advantages,” says Rick Edelman.

Due to the strong volatility of Bitcoin, investing in the cryptocurrency itself can be risky, the businessman admits. Crypto asset purchase decisions should be made based on solid logic rather than fear of missing out (FOMO). Even if the US Securities and Exchange Commission (SEC) soon rejects applications from companies wishing to launch spot ETFs on ether, the agency will still approve them by the end of the year, the owner of Edelman Financial is convinced:

“I am confident that Bitcoin and Ethereum ETFs will have a big impact on the market in the long term. In five years, there could be dozens or even hundreds of cryptocurrency ETFs.”

Last year, Rick Edelman had more modest expectations for Bitcoin – the businessman assumed that in 2025 the first cryptocurrency could soar to $150,000.