$402 Billion Investment Fund Set for Bitcoin (BTC), Ether (ETH) Exposure

New York-based multi-billion dollar private investment management firm Neuberger Berman, will be offering exposure to cryptocurrencies such as bitcoin and ether. 

Neuberger Berman Targets Bitcoin Derivatives

The investment giant made a filing with the US Securities and Exchange Commission  (SEC) on Wednesday (August 11, 2021) for its Commodity Strategy Fund to gain indirect exposure to bitcoin and ether futures. Investors will also get indirect exposure to bitcoin trusts and exchange-traded funds (ETFs). 

According to the filing, the Neuberger Berman Commodity Strategy Fund will invest in cryptocurrency through its subsidiary. The fund, established in 2012, has $164 million in assets as at July 2021 and indirectly invests in commodity-linked futures contracts. Meanwhile, Neuberger Berman has $402 billion in assets under management (AUM).

An excerpt from the document reads:

‘The Fund may seek to gain exposure to cryptocurrencies, including bitcoin and ether, indirectly through cryptocurrency derivative instruments, such as bitcoin futures and ether futures traded on futures exchanges registered with the Commodity Futures Trading Commission, or indirectly through investments in investment vehicles that invest in cryptocurrencies.”

Neuberger Berman earlier talked about bitcoin and crypto in an article published back in March. Titled “The Bitcoin Experiment” and written by some of the company’s executives, the article noted the increasing number of companies who were allocating some of their portfolios into BTC. 

Meanwhile, the authors said “the Bitcoin phenomenon is worth watching closing”, but did not fail to emphasize the risks and volatility associated with the flagship cryptocurrency. Speaking on the crypto investment, the article said:

“From our perspective, as a fundamentals-driven asset manager, an investment in cryptocurrency should not be considered part of a standard asset allocation. Instead, we’d rather view it as an option that pays off when expectations for an uncertain, inflationary future increase, and make the finite, non-human controlled supply dynamics of cryptocurrencies valuable.”

Neuberger Berman joins a long list of institutions taking interest in bitcoin and other crypto-assets.

As reported by BTCManager in late July, asset management firm Golden Tree revealed that it made a bitcoin investment. 

Also, London-based multi-billion dollar hedge fund giant Marshall Wace is reportedly considering making investments in some cryptocurrency companies.