Fiduciary Considerations When Creating a Digital Investment Mandate

Over the past decade, Bitcoin and digital assets have transitioned from being a niche technology to becoming mainstream investment vehicles with exceptional returns. The advent of Bitcoin ETFs in January 2024, sponsored by renowned firms like BlackRock, Fidelity, and Invesco, has brought digital asset investments into the spotlight, prompting fiduciaries to weigh their potential inclusion in their clients' portfolios. Given the distinctive technological, volatility, and cyclical attributes of this asset class, many fiduciaries grapple with how best to align digital assets with broader investment objectives. In this paper, we delve into crucial considerations and objectives.