A long-awaited change of heart – After much debate, Neuberger Berman finally gives the green light to investments in Bitcoin (BTC). The legendary $400 billion firm finally propels itself into the future.
A small percentage for the company, a big step for Bitcoin
Neuberger Berman is one of the largest institutions on the famous New York Stock Exchange. Founded in 1939, it is now at the head of multi-billion dollar asset management: $402 billion to be precise. It now has permission to invest a small percentage of its assets in cryptocurrencies.
The investments will initially be made through exchange-traded funds (ETFs), according to the media outlet Decrypt. This will reportedly be the Canadian-based Bitcoin Purpose ETF, which will have a 1% management fee and will be the world’s first direct custody BTC ETF. The fund will provide investors with exposure to bitcoin, without the need to own it directly.
In the regulatory filing with the U.S. Securities and Exchange Commission (SEC), the company said that as of today, its $164 million mutual fund could reserve up to 5% of its assets for BTC investments.
A highly controlled investment
This development follows those made earlier this month. Indeed, Neuberger Berman had already filed with the SEC on August 11, when it added crypto derivatives, BTC and ETFs to their list of permitted investments.
According to its previous reports, Neuberger Berman said that it wanted to turn to cryptos to have a hedge against inflation as well as another source of income.
ETH funds taken off the table
Neuberger Berman isn’t the only one to have reconsidered its ETH strategy recently. In fact, 2 investment firms, VanEck and ProShares, have all withdrawn their applications to the SEC to approve Ethereum ETFs. The withdrawals will haveThe IPO took place just two days after the filing with the regulators.
Neuberger Berman joins a host of leading asset managers who are jumping into the crypto universe. Back in April, Morgan Stanley also announced that several of its funds could invest up to 25% of their total assets in Bitcoin futures and the Grayscale Bitcoin Trust. Similarly, Goldman Sachs shared its intention to trade Ethereum futures, in addition to the Bitcoin futures it already trades.
Smaller asset management organizations are also already holding substantial amounts of cryptos. A Goldman Sachs report, for example, found that 15% of 150 family offices already hold cryptos.
While Bitcoin’s historic bull run may have cooled in recent months, the market is slowly recovering and attracting new private and institutional interest. What if, after all, the bull run never stopped? Meanwhile, banking giants Wells Fargo and JP Morgan are launching their Bitcoin offerings.
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