$402B investment manager to allow indirect crypto exposure through commodity-focused fund

  • Neuberger Berman has filled for a commodity-focused fund with the US Securities and Exchange Commission. 
  • The Neuberger Berman Commodity Strategy Fund will enable indirect exposure to crypto. 

Independent investment management firm Neuberger Berman will now enable crypto exposure through a commodity-focused fund. In light of this, the management firm has filed for the commodity-focused fund with the US Securities and Exchange Commission (SEC). 

Neuberger Berman files for commodity-focused crypto fund

According to the SEC filing, Neuberger Berman said:

Effective immediately, Neuberger Berman Commodity Strategy Fund’s investment strategy will permit actively managed exposure to cryptocurrency investments and digital assets through cryptocurrency derivatives, such as bitcoin futures and ether futures, and investments in bitcoin trusts and exchange-traded funds to gain indirect exposure to bitcoin.

As of the 31st of July, Neuberger Berman’s community-focused fund reportedly has over $164 million in assets under management (AUM). The fund’s AUM represented 0.04 percent of the firm’s total AUM of $402 billion. 

Neuberger Berman published a report on “The Bitcoin Experiment” on the 10th of March. In the report, some top executives of the investment management firm said that crypto investment should not be considered “part of a standard asset allocation.”

The firm added that Bitcoin should instead be viewed as an option during uncertain inflationary future increases. The investment manager continued:

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.

Neuberger Berman filed for the community-focused fund with the SEC following a hint from SEC chair Gary Gensler, that he would be open to accepting ETFs based on crypto futures rather than direct exposure. 

Last month, Neuberger Berman launched a thematic equity fund – InnovAsia 5G Fund – focused on 5G technology. The firm said former Hong Kong-based chip designer YT Boon and New York-based Hari Ramanan would co-manager the Asia-focused 5G fund. In addition, a team of research analysts based in China, Hong Kong, Taiwan, and Japan will work together with the co-managers.

Also, the managers will aim at companies with less than 20 percent market penetration, where Asia influences their growth. While commenting on the Asia-focused 5G fund, YT Boon referred to Asia as an emerging Silicon Valley. According to the former Hong Kong chip designer, Asia will dominate 70 percent of 5G connections globally by the year 2025. 

Neuberger Berman manages a number of strategies, including equity, fixed income, private equity, and more. Since its inception in 1939, the private, independent, employee-owned investment firm now has offices across 25 countries. The firm also boasts of more than 2,300 professionals.

VanEck files for Bitcoin Strategy ETF

In reaction to the SEC chair’s hint, asset manager VanEck has also filed a Bitcoin Strategy ETF with the regulator. VanEck’s proposed fund would expose investors to Bitcoin futures contracts, pooled investment vehicles, and other exchange-traded products. The asset manager added that the Bitcoin Strategy ETF would enable exposure through crypto ETFs listed and traded in Canada. 

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Bio: Ibukun Ogundare is a crypto writer and researcher who uses non-complex words to educate her audience. Ibukun is excited about writing and always looks forward to bringing more information to the world.

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