$400 billion investment firm Neuberger Berman to offer exposure to Bitcoin and Ethereum
$400 billion investment firm Neuberger Berman to offer exposure to Bitcoin and Ethereum By Hannah Perez

One of the firm’s funds will offer exposure to BTC and ETH futures. Neuberger Berman principal Steve Eisman, known for ‘The Big Short’, had previously expressed his distaste for Bitcoin.

***

Neuberger Berman Group LLC

, the New York-based private investment management firm that manages more than USD $400 billion in assets, has begun dabbling in the digital currency market.

As reported by several news outlets, the firm’s commodity-focused “Neuberger Berman Commodity Strategy Fund

” is expanding its strategy to include exposure to cryptocurrency derivatives, as well as other investment vehicles. Public documents filed with the US Securities and Exchange Commission (SEC) revealed the company’s plans.

USD $400 billion firm offers BTC and ETH futures

According

to the SEC filing, Neuberger Berman’ s fund will offer exposure to Bitcoin (BTC) and Ethereum (ETH) futures

, derivatives market instruments. In addition, the fund will be able to gain indirect exposure to cryptocurrencies through investment vehicles such as trusts and exchange-traded funds (ETFs).

The application to the US regulator, which was cited by The Block

, reads:

Effective immediately, the investment strategy of the Neuberger Berman Commodity Strategy Fund (the “Fund”) will allow for actively managed exposure to investments in cryptocurrencies and digital assets through (i) cryptocurrency derivatives, such as bitcoin futures and ether futures, and (ii) investments in bitcoin trusts and exchange-traded funds to gain indirect exposure to Bitcoin.

‘These actions will be carried out through a subsidiary firm, the official document detailed.

See also  Moonbeam Network or when Polkadot meets Ethereum VM

The fund in question has USD $164 million in assets.

The company’s main assets under management, with investments in derivatives linked to agriculture, livestock, energy and precious metals, among other areas. As such, gold represents its main holding (almost 8%), followed by corn (7%) and heating oil (6.6%).

Neuberger Berman had already revealed intentions to test the waters in the cryptocurrency space. As reviewed by The Block, the firm had filed a “hedged cryptocurrency volatility fund” last month with the SEC. Although, according to the firm’s July 29 earnings filing, the fund had not made any sales to investors.

The Big Short’ star changes his mind?

Notably, Neuberger Berman’ s digital currency initiatives come on the heels of the firm’s release of an article on Bitcoin in March of this year. Entitled “The BitcoinExperiment,” the publication noted how the cryptocurrency’s rising prices were generating growing demand among investors around the world.

From our perspective, the Bitcoinphenomenon is worth watching closely,” Neuberger Berman executives had written. However, despite accounting for the massive interest, the firm concluded that, from their perspective, “an investment in cryptocurrencies should not be considered part of a standard asset allocation.”

Instead, we prefer to view it as a worthwhile option when expectations of an inflationary and uncertain future are rising, and it makes the finite, non-human-controlled supply dynamics of cryptocurrencies valuable,” the publication’s authors wrote.

For his part, Steve Eisman, managing director of Neuberger Berman and known for being one of the protagonists of the book “The Big Short,” remained reluctant to digital currencies. In 2018 he had already dismissed Bitcoin claiming it had “no purpose” and was impossible to value: “You’re buying and selling something that’s impossible to value,” he said at the time.

See also  Markets update: bitcoin seeks new highs after two consecutive months on the rise

More recently Eisman reiterated his stance: “I’m staying out ofit.I don’t get it,” he told Bloomberg earlier this year.

It should be noted that Eisman is an investor known for successfully betting against the U.S. housing bubble in 2007, profiting from the 2008 financial collapse. In the film adaptation of Michael Lewis’ book, Eisman’s character is played by Steve Carrell.

Recommended reading

Sources: The Block, <a href=”https://u.today/402-billion-investment-management-firm-approves-bitcoin-and-ethereum-exposure”>U.Today

Versión de Hannah Estefanía Pérez / DiarioBitcoin

Imagen de Unsplash