According to the latest news, a fund controlled by the multimillion-dollar asset management company called Neuberger Berman has reportedly decided to include Ether and Bitcoin derivatives and other investment vehicles in its portfolio. The filing specifies the fund as the ‘Neuberger Berman Commodity Strategy Fund. The new strategy for investment will aim to allow a managed exposure to digital assets and cryptocurrency investments in crypto derivatives, like ether futures and bitcoin futures. Besides this, indirect exposure to bitcoin will be achieved by funds traded on exchange platforms and bitcoin trusts. All the aforementioned actions are expected to take place through a subdivision of Neuberger Berman.
The scope of the commodity fund is inherently quite broad, wherein the investments in derivatives are tied to many areas like livestock, agriculture, energy, and also precious metals. Early in 2015, many cryptocurrencies like Bitcoin were already deemed as commodities by the Commodity Strategy Fund (CTFC).
This new filing has come out following the disclosure of a Hedged Cryptocurrency Volatility Fund by Neuberger Berman. The Hedged Cryptocurrency Volatility Fund had reportedly failed to make any sales to the investors, as of July 29, 2021. It has a registered minimum investment amount of $5 million.
Neuberger Berman has been watching the phenomenal rise in the Bitcoin cryptocurrency, as a result of which it decided to conduct the Bitcoin Experiment. The company believes that investments in cryptos should not be associated with standard asset allocation. Rather, the company views crypto investments as an alternative that gives returns in the face of an inflationary and uncertain increase in the financial markets.