New York-based asset manager Neuberger Berman is giving the green light to use a portion of its assets to seek indirect exposure to Bitcoin (BTC).
In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Neuberger Berman says its Commodity Strategy Fund can now invest in Bitcoin products.
“Effective immediately, Neuberger Berman Commodity Strategy Fund’s (the ‘Fund’) investment strategy will permit the Fund to invest up to 5% of its assets in cryptocurrency investments through Bitcoin futures and investments in the securities of exchange-traded funds organized and listed for trading in Canada to gain indirect exposure to bitcoin.”
Neuberger Berman adds that its Commodity Strategy Fund can also seek BTC exposure by investing in Bitcoin futures that are registered with the US derivatives markets regulator, Commodity Futures Trading Commission (CFTC).
“In addition, the Neuberger Berman Commodity Strategy Fund may seek to gain investment exposure to cryptocurrencies through Bitcoin futures traded on futures exchanges registered with the Commodity Futures Trading Commission.”
As of March 31st, Neuberger Berman’s assets under management amounted to $401.8 billion. The company’s Commodity Strategy Fund is valued at $164 million.
Neuberger Berman names taxation as a risk factor in the company’s move to invest in Bitcoin.
“Because of the evolving nature of digital assets, it is not possible to predict potential future developments that may arise with respect to digital assets. Any future guidance on the treatment of digital assets for federal, state or local tax purposes could result in adverse tax consequences for the Fund or the Subsidiary and could have an adverse effect on the value of Bitcoin.”
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