Grayscale CEO Michael Sonnenshein She said pension funds are looking at Bitcoin as an asset class to diversify their portfolio.
He said this during an interview with CNBC on June 10. According to him, the decline in the cryptocurrency market hasn’t affected the interest shown in the cryptocurrency.
According to Sonnenshein, most of these funds look at a long-term perspective, which is why they focus more on regulation.
In his words,
We spend time with politicians and some of the largest pensions and endowments focused on diversifying their portfolios and actively exploring crypto allocations. It’s a different kind of consent.
Pension funds look to cryptocurrencies
The statement will come when around 401 (k) managers announced their willingness to offer cryptocurrency investment options.
Last month, Fidelity Investments, the largest pension plan provider in the United States, said those participating in its 401 (k) plan can now invest 20% of their pension funds in Bitcoin.
The San Francisco-based 401 (k) administrator also plans to allow workers to invest 5% of their retirement funds in cryptocurrencies. Furthermore, the company will allow these users to use different cryptocurrencies through a self-brokerage window.
The authorities kick against such investments
The U.S. Department of Labor has released a compliance assistance document reminding pension plan providers that cryptocurrencies do not meet standards for prudent financial investments.
He warned that these digital assets pose great risks and could impact the retirement funds of the participants who get involved. Although she warned trustees of their duty, she stopped banning pension providers from providing cryptocurrencies 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 on the matter.
But pension plan providers aren’t holding back either. Fidelity told DOL to focus on providing Trustees guidance instead of offering armchair views on cryptocurrency risk.
In the meantime, ForUsAll has taken a qualitative leap by suing the DOL. The firm wants the court to prevent the Department from limiting the right of US investors to decide how to invest. He asks the court to suspend driving.