Crypto adoption has been witnessing interest from retail and major institutions alike since the beginning of this year. Several major financial firms and leading banks announced direct and indirect investments in crypto-related products in the last seven months. Neuberger Berman, the New York-based investment management firm, became the latest financial firm to enter the crypto market. Bitcoin and other cryptocurrencies have gained a lot of mainstream exposure this year as they continue to attract more and more big-time investors.
Neuberger Berman will manage crypto funds.
In an official filing with the US Securities and Exchange Commission (SEC), the company mentioned that Neuberger Berman Commodity Strategy Fund’s investment strategy would permit actively managed exposure to cryptocurrency investments and digital assets through cryptocurrency derivatives, including Bitcoin futures and Ethereum futures. The firm’s strategy also includes investments in bitcoin trusts and exchange-traded funds to gain indirect exposure to bitcoin. The announcement comes when the cryptocurrency market cap jumped by nearly $700 billion in the last three weeks.
Institutional interest in crypto continues to rise.
Neuberger Berman Group stated, “The value of the Fund’s investments in cryptocurrency is subject to fluctuations in the value of the digital currencies, which have been and may in the future be highly volatile. The value of cryptocurrencies is normally determined by the supply and demand for cryptocurrency in the global market for cryptocurrency trading, which consists primarily of transactions on electronic exchanges.” There has been a noticeable rise in the major financial firms that are interested in cryptocurrencies. Later last year, Ruffer Investment Company, the London-based investment management firm, allocated 2.5% funds to Bitcoin in an effort to reduce the company’s gold exposure. In June 2021, Ruffer made a profit of nearly $1 billion on its Bitcoin holdings.