The cryptocurrency market is a big place of opportunities. Aside from trading and investing in cryptocurrencies, anyone can now join the craze of investing in NFTs and other digital assets. With the increasing number of investors putting their money in crypto, it’s safe to say that crypto isn’t just a bubble.
Recently, Bitcoin and Ether showed recovery when they hit $46k and $3k, respectively. This is after a massive correction that happened in May, following Tesla’s announcement that it wouldn’t accept Bitcoin as payment anymore and the Chinese government banning crypto-related transactions in the country. Thanks to big and small fish in the market, the crypto seems to be bouncing back slowly.
Neuberger Berman resorts to crypto
Crypto isn’t just for individual investors. Bank institutions and investment funds are starting to resort to digital assets to gain massive earnings. Just this week, Neuberger Berman, a $400-billion worth investment fund company, disclosed that it is expanding its fund strategy and including Bitcoin in its portfolio.
During its regulatory filing, the company specifically said that it would allow the management of cryptocurrencies like Bitcoin and Ether. This will enable the company and its investors to get exposed to Bitcoin.
It can be gathered from the facts that Neuberger Berman has always been a commodity-focused investment fund. Some of its investments are in agriculture and precious metals. Now that it is moving towards the crypto market, it’s big news for the public investors.
Neuberger Berman watched Bitcoin
Before this big step, Neuberger Berman shared to its featured blog that Bitcoin is worth watching out closely. The company emphasized that due to the risks brought by cryptos, it shouldn’t be viewed as part of a standard asset allocation. Instead, it’s an option they can choose whenever there’s a great opportunity to enter and earn.
Other investment funds with crypto exposure
Neuberger Berman isn’t the first investment fund that started investing in crypto. While some companies only treat Bitcoin and other cryptos as option investments, there are already fund companies that focus only on crypto as investments, such as BLOK. BLOK is a crypto ETF and actively invests in companies with blockchain technologies. Its investors can gain exposure to crypto without directly investing in digital assets.
This year, another crypto mutual fund was launched-ProFound. This fund is based in Maryland and has the first publicly available fund investment that is attached to Bitcoin. ProFound specifically invests in Bitcoin futures contracts. The launching of ProFound somewhat coincides with the slow recovery of Bitcoin. Since the crypto’s correction in May, which led to Bitcoin falling to $30k, it reached $40.9k again when ProFound announced its Bitcoin mutual fund.
There’s a lot more who try to include cryptocurrencies in their portfolio. However, as of this writing, the U.S. still doesn’t approve applications of ETFs related to Bitcoin and other cryptocurrencies. The discussion about crypto ETF has been opened many times, but the Securities and Exchange Commission rejected the proposal twice already.