Associates Moustapha Hammoud and Mariel Stringer-Fehlow from Mishcon de Reya's Private Wealth and Private Wealth Disputes departments featured in EprivateClient providing an overview of the key considerations for trustees when it comes to investing in digital assets.
"For trustees who are held to high standards of care in respect to the profitability, appropriateness, and security of their trust's investments (an even higher standard being expected of professional trustees), crypto-assets have seemed like a risk not worth taking until relatively recently.
There has been a shift, however, and crypto-assets are becoming a desirable part of an investment portfolio with beneficiaries and settlors no longer willing to just dabble on their own account, asking trustees to make these investments on their behalf.
One health warning is that whilst there has been a marked increase in investing in "crypto" generally, what exactly the different investments are can vary tremendously. As with any kind of financial instrument, the ways in which an investor may generate a profit comes down to the precise way that instrument works."
This article also highlights the potential risks and provides a framework on how trustees should approach cryptocurrencies.
Read the full article here.