Through regulated futures and other investment vehicles, the Neuberger Berman Commodity Strategy Fund can gain exposure to the two largest cryptocurrencies.
Neuberger Berman, a New York-based private investment firm with $402 billion in assets under management, has granted a subsidiary of its commodity-focused fund the authority to invest in regulated Bitcoin and Ethereum futures, according to an Aug. 11 filing with the US Securities and Exchange Commission.
Apart from derivatives, the Neuberger Berman Commodity Strategy Fund will have indirect exposure to cryptocurrency through investment vehicles such as trusts and exchange-traded funds. The fund has an AUM of $164 million, with gold as its largest holding (7.9 percent), followed by corn (7.0 percent) and heating oil (7.0 percent) (6.6 percent).
Steve Eisman’s rejection of Bitcoin
Interestingly, Steve Eisman, managing director at Neuberger Berman, has previously dismissed Bitcoin. In May 2018, he claimed that the cryptocurrency lacked “any purpose” and that valuing it was impossible: You’re purchasing and selling something that has no monetary value.
According to U.Today, Eisman also stated that he opted out of Bitcoin in January due to a lack of understanding:
Steven Eisman does nothing with the big Bitcoin. I stay out of it…I don’t understand it. I don’t know how to value it.
The investor gained notoriety after betting against the US housing bubble in 2007 and profiting from the subsequent crash in 2008. Steve Carrell portrayed the hedge fund manager in Adam McKay’s smash hit “The Big Short,” which inspired a whole new generation of bears.
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