At the end of July, the assets of Neuberger Berman under administration were more than $164 million, accounting for around 0.04 percent of its overall assets under management.
An application has been submitted by Neuberger Berman, an investment management business located in New York, for a commodity-focused fund that will be able to obtain indirect exposure to cryptocurrency investments.
Earlier today, the investment firm announced that its Commodity Strategy Fund would provide investors with indirect exposure to cryptocurrencies and digital assets through Bitcoin (BTC) and Ether (ETH) futures, as well as Bitcoin trusts and exchange-traded funds (ETFs), according to a filing with the United States Securities and Exchange Commission.
As stated in the application, the fund intends to get exposure to the cryptocurrency market through the creation of a subsidiary.
At the end of July, Neuberger Berman announced that the fund had more than $164 million in assets under administration, or 0.04 percent of the firm’s total assets under management, or $402 billion.
“An investment in cryptocurrency should not be considered part of a standard asset allocation,” according to a blog post by top leaders at the company published in March this year.
It stated that it prefers to consider Bitcoin as an alternative that pays off when expectations for an uncertain, inflationary future rise, and that this makes the finite, non-human controlled supply dynamics of cryptocurrencies important.
The investment should be understood as speculative, and investors should be prepared to part with nearly all of their committed capital notwithstanding any prospective windfalls, according to the authors.
After recent statements from SEC Chair Gary Gensler, who suggested that he might be more receptive to allowing exchange-traded funds based on cryptocurrency futures rather than direct exposure to the asset class, the Neuberger Berman filing comes as a welcome sign.
Several financial institutions, including VanEck and Invesco, have announced intentions to develop exchange-traded funds (ETFs) that will have indirect exposure to cryptocurrency through Bitcoin futures and other investment vehicles.
