Yes, cryptocurrencies are riskier than regular retirement funds because they have a wider range of potential outcomes. They can also appreciate and depreciate in value quickly. This is where Wealthsimple’s expertise comes in. We have designed risk management technology that’s customized for cryptocurrency’s unique features as an asset class and our institutional investors work to mitigate risk by sizing the cryptocurrency position within the ETF.
This combination of technology and financial expertise means that even if employees see extremely bad long-term cryptocurrency returns, their total retirement assets won’t be affected too much.