The multibillion-dollar asset management firm Neuberger Berman can now invest a small percentage of its assets in cryptocurrency. By way of bitcoin (BTC) futures and BTC exchange-traded funds (ETFs) based in Canada. In an amended regulatory filing with the U.S. Securities and Exchange Commission (SEC), the company said that effective immediately, its $164 million commodities mutual fund could reserve up to 5% of its assets for BTC investments “to gain indirect exposure to bitcoin.”
Neuberger Berman initially filed with the SEC on August 11.
This latest development follows on from those made earlier this month. As reported earlier, Neuberger Berman initially filed with the US SEC on August 11, when they added cryptocurrency derivatives, BTC trusts, and ETFs to their list of permitted potential investments. In terms of derivatives, this initial filing pertained to Ether (ETH) as well as BTC. The later supplement from August 20 stated that it replaces the original; ETH derivatives no longer appear part of Neuberger Berman’s investment options.
Neuberger Berman wants to use bitcoin as an inflation hedge.
Earlier, Neuberger Berman said that the motivation behind their drive towards crypto was growing the fund’s use as an inflation hedge. Meanwhile, the company also believed that price trends could serve as another potential source of revenue. Neuberger Berman is not the only one potentially reconsidering their strategy when it comes to ETH recently. The other two investment firms, VanEck and ProShares, both withdrew their respective applications with the SEC to approve ETH futures ETFs. The withdrawals reportedly came only two days after filing with the regulators. Bitcoin and other cryptocurrencies have gained a lot of mainstream exposure this year as more and more institutions invest in them.