Bitcoin’s milestone week comes as new crypto exchange-traded funds are hitting the market.

Investor and best-selling personal finance author Ric Edelman thinks the rollout gives investors more access to upside.

He finds buffer ETFs and yield ETFs particularly exciting.

“You can now invest in bitcoin ETFs that protect you against the downside volatility while preserving your ability to enjoy the upside profits,” Edelman told CNBC’s “ETF Edge” this week.” You can generate massive amounts of yield, much more than you can in the stock market.”

Edelman is the founder of the Digital Assets Council of Financial Professionals, which educates financial advisors on cryptocurrencies. He is also in Barron’s Financial Advisor Hall of Fame.

“Crypto is meant to be a long-term hold, just like the stock market,” said Edelman. “It’s meant to diversify the portfolio.”

His thoughts came as a bitcoin rally got underway. The cryptocurrency crossed $100,000 on Thursday for the first time since February. As of Friday’s close on Wall Street, bitcoin gained 6% this week. It is now up almost 10% so far this month.

However, Edelman sees problems when it comes to leverage and inverse bitcoin ETFs. He warned that not all crypto ETFs are appropriate for retail investors, suggesting most don’t understand how they work.

During the same interview, “ETF Edge” host Bob Pisani referenced 2x Bitcoin Strategy ETF (BITX) as an example of a leveraged bitcoin product that includes daily fees and resets.

The fund is beating bitcoin this week, jumping more than 12%. So far this month, the ETF is up 19%. But the BITX is underperforming bitcoin this year. It is up about 1.5%, while bitcoin is up roughly 10%.

Volatility Shares is the ETF provider behind BITX.

The company writes on its website: “The Fund is not suitable for all investors … An investor in the Fund could potentially lose the full value of their investment within a single day.”

One of the most recognized names in personal finance is urging Americans to increase their financial literacy, and urging the country to do a better job of providing the education. 

“We spend a lot of time trying to improve financial literacy. We stink at it,” said Ric Edelman, founder of Edelman Financial Engines, on this week’s CNBC “ETF Edge.”

Edelman believes the problem is rooted in the fact the U.S. has never had a great tradition of encouraging smart personal finance, and he says it has never been more important to fix, given how long people are now living. That increases the risks related to running out of money later in life and creates serious questions about standard investing models for long-term financial security, such as the 60-40 stock and bond portfolio.

“We are the first generation, as baby boomers, that will live long lives as part of the norm,” Edelman said. “Everyone before us, our parents and grandparents mostly died in their 50s and 60s. You didn’t have to plan for the future, because you weren’t going to have one,” he added.

One of his biggest concerns with the current generation of young investors is that they seem to believe in get-rich-quick schemes. Many of the new investing websites have been too encouraging of risky strategies that lure young investors in, he says, promoting financial gambling rather than investing. Options and zero-day options have become a significant part of the daily trading landscape in the last several years. According to data from the New York Stock Exchange, the percent of retail traders participating in the options market approached the 50% mark in 2022. In 2024, options volume hit an all-time record.

Edelman says younger generations should be wary of a corporate America that makes consumer finance more complicated than it should be, which includes the manufacturing of overly sophisticated and expensive financial products. “They want to make it complex, to make you a hostage rather than a customer,” he said. 

He also cautions young investors to make sure they are getting information about personal finance from credible sources. “When so many are getting their financial education from TikTok, that’s a little scary,” he said.

Edelman believes the cards are stacked against young investors because of the lack of high schools mandating a course in personal finance. “The only way we discover the issues of money is through the school of hard knocks as adults, and we’re over our heads when it comes to buying a car, getting a mortgage, insurance and saving for college” he said. 

That situation is improving for the next generations of adults. Utah was the first state to require a personal finance course for high school graduation in 2004, and the list grew to include 11 states by 2021. As of this year, 27 states now require high school students to take a semester-long personal finance course for graduation, according to Next Gen Personal Finance. 

Another big challenge for young investors is they often don’t have a lot of money to invest, with many recent college graduates struggling to pay bills and left with little to put towards other financial goals. But there is at least one reason to be hopeful about younger Americans, Edelman says: they are highly motivated to reach financial success.

“Today’s youth looks at their parents and sees how poorly they were prepared for retirement. They don’t want that to be their future” he said.