Hands holding a Bitcoin symbol. While the high-net-worth and family offices might be willing to make a crypto venture, pension funds, endowments and foundations “are the furthest away from making substantial allocations to this space.” (Photo: Shutterstock)

Cryptocurrency companies would like to expand their reach into institutional portfolios—endowments and pension funds—but right now there’s “only downside risk in cryptocurrency.”

So says Blake Estes, counsel, financial services, and coleader of blockchain and distributed ledger technology at Alston & Bird LLP, New York, in a report from Pensions & Investments. Estes adds, “It would take a leap of faith with a new custodian with no brand recognition. That presents a real risk for them.”

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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