Neuberger Berman Commodity Fund, the multi-million dollar wealth management firm, is authorized to invest 5% in cryptocurrencies. In short, through Bitcoin (BTC) and BTC Exchange Traded Fund (ETF) futures.
According to previous reports, Neuberger Berman indicated that the motivation behind his push towards cryptocurrencies was the growth in the use of the fund as a hedge against inflation.
Specifically, in an amendment to the filing with the U.S. Securities and Exchange Commission (SEC), Neuberger Berman said that, effective immediately, its $ 164 million commodities mutual fund could reserve up to 5% of its assets. for investments in BTC. And thus, gain indirect exposure to Bitcoin.
By the way, in this modification Neuberger Berman stated that the fund can seek to gain investment exposure to cryptocurrencies through Bitcoin futures, traded on futures exchanges registered with the Commodity Futures Trading Commission. Or, by investing in securities of funds traded on an organized and listed exchange in Canada that invests in Bitcoin.
For better understanding, this modification is a continuation of what was done earlier this month.
Neuberger Berman will allow exposure to cryptocurrencies
To recall, New York-based investment management firm Neuberger Berman applied on August 11 for a commodity-focused fund so that it could gain indirect exposure to cryptocurrency investments.
In a filing with the SEC, the investment firm said its commodity strategy fund would allow investors to have indirect exposure to cryptocurrencies. Through Bitcoin (BTC) and Ethereum (ETH) futures.
Also, Bitcoin trusts and exchange-traded funds, or ETFs. According to the filing, the fund plans to gain exposure to cryptocurrencies through a subsidiary.
Basically, Neuberger Berman’s presentation comes after comments from SEC Chairman Gary Gensler. Who recently hinted that he would be more open to accepting exchange-traded funds based on cryptocurrency futures rather than through direct exposure.
$ 164 million commodity fund can invest 5% in BTC
Neuberger Berman, filed the development on August 11 with the United States Securities and Exchange Commission (SEC). And there he added cryptocurrency derivatives, BTC trusts, and ETFs to his list of possible allowed investments.
In terms of derivatives, this initial paper involved Ethereum (ETH) and Bitcoin (BTC). The following supplement from August 20 stated that it supersedes the original. Therefore, ETH derivatives are no longer part of Neuberger Berman’s investment options.
In fact, Neuberger Berman isn’t the only one who has reconsidered its strategy when it comes to ETH recently. Two investment firms, VanEck and ProShares, did too.
In this regard, Eric Balchunas, senior ETF analyst at Bloomberg, commented on Twitter: «It appears that VanEck is withdrawing their Ethereum ETF, which they presented two days ago».
I close with this phrase by Fyodor Dostoevsky: «You have to want to the extreme to reach the end. Everything else is insignificant».