Ben Strack

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 <ul>
 <li>Two firms had expressed intent last month to create a series of digital asset management products and strategies</li>
 <li>The SEC has yet to allow an ETF that directly holds bitcoin, though its final deadline to make a decision on fund manager VanEck’s bitcoin ETF is Nov. 14</li>
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BlockFi and Neuberger Berman are working together in hopes of launching a bitcoin ETF, according to <a href="https://www.sec.gov/Archives/edgar/data/0001853419/000092963821001329/s1.htm" target="_blank" rel="noreferrer noopener">a regulatory disclosure</a> filed with the SEC on Monday.&nbsp;



The two firms <a href="https://cms.blockworks.co/blockfi-to-launch-new-product-suite-with-private-firm-neuberger-berman/" target="_blank" rel="noreferrer noopener">announced a partnership</a> last month to develop and issue a series of digital asset management products and strategies, and now have revealed plans to offer a fund to offer direct exposure to bitcoin.



“The trust’s investment objective is for the shares to reflect the performance of bitcoins held by the trust, less the trust’s expenses and other liabilities,” the regulatory filing notes. “In seeking to achieve its investment objective, the trust will hold bitcoin.”



The planned offering would trade on the New York Stock Exchange. The disclosure did not include a ticker and expense ratio for the potential product.&nbsp;



The ETF’s sponsor is officially listed as BlockFi NB LLC, a joint venture between BlockFi and Neuberger Berman affiliate NB BF JV LLC.



Spokespeople for BlockFi and Neuberger Berman declined to comment.&nbsp;



Founded in 2017, BlockFi aims to build a bridge between cryptocurrencies and traditional financial and wealth management products for individual and institutional investors.&nbsp;



Neuberger Berman is an 82-year-old private, independent employee-owned investment manager that manages $437 billion in client assets as of Sept. 30.



ProShares launched <a href="https://cms.blockworks.co/first-bitcoin-futures-etf-nears-1b-on-first-day-of-trading/" target="_blank" rel="noreferrer noopener">the first bitcoin futures ETF</a> in the US last month, and Valkyrie Investments <a href="https://cms.blockworks.co/valkyries-btf-trades-10m-in-first-5-minutes/" target="_blank" rel="noreferrer noopener">brought to market</a> a similar product three days later. The SEC has yet to allow an ETF that directly holds bitcoin, though its final deadline to make a decision on fund manager VanEck’s bitcoin ETF is Nov. 14.



Bloomberg Intelligence ETF Analyst said during <a href="https://cms.blockworks.co/podcast-bitcoin-etf-everything-you-need-to-know-leah-wald-eric-balchunas/" target="_blank" rel="noreferrer noopener">a recent Blockworks podcast</a> that he would estimate December 2022 as his “over-under” for a spot bitcoin approval. Valkyrie CEO Wald, who joined Balchunas on the podcast, noted that she believed it would be sooner.&nbsp;



Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.

Bitcoin

BlockFi and Neuberger Berman Look to Launch Bitcoin ETF

Jacquelyn Melinek

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 <ul>
 <li>Neuberger Berman is an 82-year-old private, independent employee-owned investment manager that manages $437 billion in client assets as of September 30</li>
 <li>The products and strategies will be held in a separate entity from the two companies called BlockFi | nb</li>
 </ul>
 
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BlockFi has partnered with Neuberger Berman to develop and issue a series of digital asset management products and strategies, the companies announced on Monday.&nbsp;



Through the launch of BlockFi | nb, clients will have an asset management product suite that provides access to digital assets and service from experts in investment management and cryptocurrency, Greg Collett, head of investment products of BlockFi told Blockworks. 



The product suite will include ETFs and other traditional structures, the companies said in a statement. Additionally, the crypto products will exist alongside Neuberger Berman’s suite of actively managed crypto strategies and BlockFi’s retail and institutional crypto solutions, it said.&nbsp;



BlockFi provides financial services like interest-earning accounts and USD loans secured with crypto for individuals and businesses across the US and globally.&nbsp;



“Currently in the markets we are witnessing a huge shift in investor sentiment towards digital assets, along with demand to partner with trusted firms with demonstrated crypto expertise, institutional rigor and leadership in asset management,” Collett said.



Neuberger Berman is an 82-year-old private, independent employee-owned investment manager that manages $437 billion in client assets as of September 30, the company said. The firms’ main assets reside within public markets at $333 billion across equities, fixed income, hedge funds and liquid alternatives and real estate, according to Neuberger Berman’s annual <a href="https://www.nb.com/en/global/annual-report" target="_blank" rel="noreferrer noopener">report</a> from June.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="699" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png" alt="" class="wp-image-9812" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=377 377w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=382 382w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=321 321w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screenshot-2021-10-25-at-13.31.02-1024x699.png?w=1068 1068w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Breakdown of the firm&#8217;s $402 billion AUM as of March 31, 2021; excluding Dyal private equity assets ($26B) and private credit ($1B); Source: Neuberger Berman annual report, <a href="https://www.nb.com/en/global/annual-report" target="_blank" rel="noreferrer noopener">June 2021</a></figcaption></figure>



The company also has about $69 billion AUM in private markets including: private equity, private credit, specialty alternatives and private real estate, the report showed.&nbsp;



When asked about its decision to partner with crypto-focused BlockFi, a spokesperson for the firm responded, “Neuberger Berman has always been at the forefront of asset management trends such as expanding access to alternatives solutions and being a recognized leader on ESG innovation.” The spokesperson declined to respond to other questions requested by Blockworks.&nbsp;



Earlier this year, BlockFi launched BlockFi Prime, a trading platform for institutional investors and high-net worth individuals, Blockworks previously <a href="https://cms.blockworks.co/blockfi-launches-prime-for-institutional-investors/" target="_blank" rel="noreferrer noopener">reported</a>. The crypto-company also raised a Series E funding round of <a href="https://cms.blockworks.co/blockfi-set-to-increase-valuation-to-almost-5b-through-new-fundraising/" target="_blank" rel="noreferrer noopener">$500 million</a> in June, bringing the company total valuation to nearly $5 billion.&nbsp;



“We’re excited for this partnership—as we continue to innovate and deepen the options available to investors,” Peter Sterling, managing director at Neuberger Berman and a BlockFi | nb board member, said in a statement.



“Digital assets are increasingly taking their place as mainstream investments, and we intend for BlockFi | nb to play a key role in that effort,” Sterling added.



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