Neuberger Berman Seeks to Provide Crypto Exposure with Commodity Fund

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by Bhushan Akolkar · 3 min read
Neuberger Berman Seeks to Provide Crypto Exposure with Commodity Fund
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The Neuberger Berman’s Commodity Strategy fund will offer crypto exposure through Bitcoin and Ethereum futures, Bitcoin trusts or exchange-traded funds.

The number of institutions seeking crypto exposure seems to grow every single day. On Wednesday, August 11, New York-based investment giant Neuberger Berman filed with the US Securities and Exchange Commission (SEC) for a commodity-focused fund offering indirect exposure to crypto investments.

Neuberger Berman and Its Crypto Strategy

The filing further notes that Neuberger Berman’s Commodity Strategy fund will offer crypto exposure through Bitcoin and Ethereum futures. Furthermore, investors can seek exposure either through Bitcoin trusts or exchange-traded funds (ETFs).

Investment giant Neuberger Berman handles more than $400 billion in net assets under management. It noted that the Commodity Strategy Fund will gain crypto exposure through a subsidiary.

The asset management giant noted that the fund with crypto exposure had only 0.04% of the total AUM. It means the Commodity Strategy Fund manages $164 million in assets under management. Gold is currently the largest asset in this fund accounting for 7.9% of the total shares.

Earlier this year in March, Neuberger Berman said that crypto investments shouldn’t be a part of standard asset allocation. The firm further added:

“We’d rather view [Bitcoin] 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. Those with exposure should understand the speculative nature of their investment and — potential windfalls notwithstanding — be prepared to part with almost all their committed capital.”

Institutional Interest in Bitcoin

The institutional interest in Bitcoin remains intact with more players joining the bandwagon. Banking giant JPMorgan has started offering Bitcoin funds to its wealthy clients since last week.

JPMorgan said that the Bitcoin Fund will be presented in “the safest and cheapest bitcoin investment vehicles available on the private markets”.

At the same time, Bitcoin ETF applications are on the rise. Recently, SEC chairman Gary Gensler said that a Bitcoin ETF trading CME Bitcoin futures has higher possibility of approval. However, this Bitcoin ETF should follow the strict mutual fund rules in the U.S.

Soon after that two big financial players – Invesco and VanEck – have jumped in to offer Bitcoin ETFs. Furthermore, some big companies are also warming up to accept Bitcoin as payments. World’s oldest entertainment giant AMC recently announced that it will start accepting Bitcoin as payments against movie ticket sales.

As of writing this story, Bitcoin is trading at $45,580 with a market cap of $856 billion. Over the last week, the BTC price has appreciated by 15%.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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