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Grayscale CEO says pension funds are looking to add Bitcoin

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Grayscale CEO Michael Sonnenschein said pension funds are looking at Bitcoin as an asset class to diversify their portfolio.

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He said this during an interview with CNBC on June 10. In his opinion, the fall of the crypto market did not affect the interest shown in the cryptocurrency.

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Most of these funds are long-term, Sonnenschein says, so they’re more focused on regulation.

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According to him,

We spend time with politicians, and some of the largest pension funds and endowments have focused on diversifying their portfolios and actively exploring the distribution of cryptocurrencies. This is a different kind of consensus.

Pension funds are eyeing cryptocurrencies

The announcement will be made when certain 401(k) managers announce their willingness to offer cryptocurrency investment options.

Last month, Fidelity Investments, the largest provider of retirement plans in the US, said that those on its 401(k) plan can now invest 20% of their retirement funds in bitcoin.

The San Francisco 401(k) administrator also plans to allow workers to invest 5% of their pension funds in cryptocurrencies. In addition, the firm will allow these users to use multiple cryptocurrencies through a self-service window.

The authorities kick such investments

The U.S. Department of Labor issued a compliance assistance document reminding pension plan providers that cryptoassets do not meet prudent financial investment standards.

He warned that these digital assets pose great risks and could affect the pension funds of the participants who participate in them. While he warned fiduciaries of their responsibilities, he did not ban pension organizations from providing crypto assets as an investment option.

Lawmakers have also questioned the decision to include cryptocurrencies as a retirement option. Senators Elizabeth Warren and Tina Smith wrote a letter to Fidelity about the matter.

But pension plan providers aren’t backing down either. Fidelity advised the US Department of Defense to focus on providing advice to fiduciaries instead of offering armchair opinions on the risk of cryptocurrencies.

Meanwhile, ForUsAll has taken it up a notch by suing DOL. The firm wants the court to prevent the Department from restricting the right of US investors to decide how they invest. He asks the court to suspend the leadership.





Credit : cryptoslate.com

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