Neuberger Berman, a $400 billion investment management firm, has announced it will add BTC and ETH exposure to its portfolio as part of the firm’s fund strategy.
According to the SEC filing, the multi-billion asset manager was approved to receive exposure to cryptocurrency through a subsidiary company with investment at least at $5 million.
Previously, the company also disclosed its Hedge Cryptocurrency Volatility Fund in an SEC Form D Filling.
The filing stated, “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.”
$400 Billion Hedge Fund Wants to Offer Access to Bitcoin and Ethereum
With the new approval announcement, the investment management becomes the latest participant in the crypto space and the list of hedge funds investing in cryptocurrencies.
Founded in 1939, Neuberger Berman is a fund that looks to target derivatives involved in livestock, precious metals, energy, among many other areas with a broad portfolio of investments.
The company has offices in 36 cities across 25 countries and a diverse team with more than 600 investment professionals. Total employees are over 2,300.
The Pick for an Uncertain Future in Asset Management
Although Steve Eisman, managing director of the company has previously said that he wanted to stay out of the cryptocurrency space.
A blog from the company, titled “The Bitcoin Experiment” demonstrates the change:
“From our perspective, as a fundamentals-driven asset manager, an investment in cryptocurrency should not be considered part of a standard asset allocation. Instead, 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.”
Given the strong inflationary environment that many major economies find themselves in the middle of, Neuberger Berman may be making the right move.
