A $400 billion investment management firm, Neuberger Berman, recently announced adding exposure to Bitcoin and Ether derivatives and investment vehicles as part of the firm’s fund strategy.
The SEC filing outlines that the asset manager will receive exposure to cryptocurrency via a subsidiary firm —with a minimum investment of $5 million. The filing comes after the firm disclosed a “Hedge Cryptocurrency Volatility Fund” in an SEC Form D Filling, which, as per the filing, has made no sales as of July 29.
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. —Reads the report.
Neuberger Berman is the latest firm to enter the crypto space by adding exposure to digital assets to its fund —joining the expanding list of hedge funds that are investing in cryptocurrencies. As we reported, 98% of hedge fund CFOs expect that digital assets will become an alternative investment for the industry, and more firms could start adding crypto to their portfolios in the next couple of years.
The fund focuses mainly on commodities with a broad portfolio of investments in derivatives related to livestock, precious metals, energy, among many other areas. Back in January, Steve Eisman —managing director for the firm— said to Bloomberg he wanted to stay out of the cryptocurrency space because he didn’t “understand it”.
However, it seems his view has changed, and it’s shown in the firm’s blog, in an article entitled “The Bitcoin Experiment.”
“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.” —Reads the blog.