401k Plan Sponsors Must Be Wary Of Fiduciary Liability Associated With Bitcoin ETFs
Fiduciary News spoke to Of Counsel Michelle Capezza on the impact of the SEC’s approval of the creation of Bitcoin ETFs on 401k plan sponsors.
Michelle said, “Plan sponsors and fiduciaries that seek to offer access to bitcoin ETFs or other cryptocurrency investments through their retirement plans must be extremely diligent in their diligence, decision-making and monitoring processes, and prepare for heightened scrutiny of their decisions. SEC Chair Gary Gensler noted in his January 10, 2024 Statement that while the listing and trading of certain spot bitcoin exchange-traded product shares were approved, bitcoin was not approved or endorsed and investors should remain cautious about the risks associated with bitcoin and products whose value is tied to cryptocurrencies.”
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