On the 25th of October, there was an exciting announcement by the well-known crypto financial services provider BlockFi. They are partnering with an investment management firm, Neuberger Berman, to develop and distribute a series of crypto asset management products including exchange-traded funds (ETFs). The Securities and Exchange Commission has so far only approved Bitcoin linked futures, which can now be listed on United States-based exchanges. However, it is a signal that the time of crypto and blockchain tech has come.
The partnership is called BlockFi Nb and will be a separate venture. Greg Collett, president of this joint venture, mentioned the market demand for partnerships with firms who have expertise in crypto, as well leadership in asset management. He was also enthusiastic about the change in investor sentiments towards digital assets.
BlockFi is a crypto focused firm with a client base in over 100 countries, and across the US. Founded in 2017, it offers both retail and institutional-facing products to its clients such as loans secured with cryptocurrency assets, interest-earning accounts, and others.
82 year old Neuberger Berman is an investment manager that reportedly manages $437 billion in client assets as of the end of September. Their main assets are in public markets, with a majority held in equities and fixed income. When asked about the decision to partner with BlockFi, a spokesperson made a statement that the firm has always “been at the forefront of asset management trends.”