"Bitcoin may be the hottest thing going in the investment world, but 401(k) plan participants aren’t likely to see it on their regular investment menus anytime soon," writes Jasmine Ye Han in Bloomberg BNA.
One reason bitcoin isn't a straightforward investment option is volatility. Despite the worth of one bitcoin jumping from $1,000 at the end of 2016 to over $4,900 by September 1, 2017, stability is not guaranteed. At one point, the price per BTC dropped below $3,300 on September 14.
And the risks are not just for plan participants, but for fiduciaries.
“Especially with the fiduciary rule, we’re going to see more litigation," notes DWC managing partner Keith Clark. "There’s going to be plenty of law firms targeting participants. And having bitcoin in those plans may raise flags for those attorneys.”
The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.
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