Mark Weaden
A major Investment firm working out of New York enters the cryptocurrency market with upwards of $400 billion worth of assets.
The Neuberger Berman Group has been operating in The Big Apple since 1939 and has represented clients with a variety of different financial products, but is now turning its attention to the global cryptocurrency market.
At the start of the year, we saw an upward curve we saw for the industry across the board, with new blockchain technologies dominating the fintech space. We’ve already seen many traditional financial institutions making direct and indirect investments into crypto so far in 2021.
What is the plan for the Neuberger Berman Group?
A recent filing made with the US Securities and Exchange Commission (SEC) shows that the firm is looking to offer an investment strategy, permitting actively managed cryptocurrency investments. These types of investments will offer the opportunity to work with cryptocurrency derivatives like Bitcoin and Ethereum.
Not only will bettors have access to futures, but they will also have the option to invest in Bitcoin trusts and exchange-traded funds. For the first time since the markets plummeted back in May, the cryptocurrency market surged by nearly $700 in the last few weeks.
The volatility of cryptocurrencies has long deterred investors and investment firms. But, as blockchain technology has been recognized as the future for many industries, we’re starting to see well-established financial institutions turning their heads.
Are the new investment options safe?
The cryptocurrency market is still in its infancy, which means that the markets could still fluctuate at any given moment. While there does seem to be more stability, it’s still recognized as a highly volatile market.
Investments made with the firm will be based on the price of coins like Bitcoin and Ether, where the price is largely based on supply and demand. The more activity the industry sees on cryptocurrency markets, the more the price will climb. While this is true, there is certainly a growing belief among investors that the price is beginning to stabilize as the mainstream adopts crypto.
Firms are seeing the return on their cryptocurrency investments and this is helping promote investments, as well as boosting the market in general. Huge investments from companies are hugely beneficial to the industry.
