Private investment management firm Neuberger Berman Group LLC has recently revealed in a Form 497 filing with the Securities and Exchange Commission (SEC) that it is now permitted to manage indirect investment in cryptocurrencies like bitcoin via cryptocurrencies derivatives and investment in Bitcoin trusts and ETFs.
Neuberger Berman is an asset management company that offers investment strategies in stocks, bonds, shares, and more to institutional investors and wealthy individuals. The $400 billion asset manager has now added cryptocurrency derivatives, Bitcoin trusts, and exchange-traded funds (ETFs) to its list of investment portfolios.
The filing read:
“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. The Fund expects to gain exposure to these cryptocurrency investments primarily by investing through its Subsidiary.”
The mutual fund which is a futures-based portfolio consists of 28 commodities across six sectors. Its top holdings were gold, corn, heating oil, and Brent crude, based on its Q2 fact sheet.
Neuberger Berman posted a blog post in March 2021 giving its viewpoint on cryptocurrencies as part of the standard asset allocation. The company was against it and said:
“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.”