Crypto lender BlockFi has formed a business with New York-based investment management firm Neuberger Berman for the development and distribution of crypto products, including exchange-traded funds.
In an October 25 announcement, BlockFi said the joint venture, BlockFi Nb, plans to “launch crypto asset management products, including ETFs and other traditional structures,” giving investors exposure to crypto. in their brokerage accounts. According to the two companies, the partnership will combine BlockFi’s retail and institutional crypto solutions with Neuberger Berman’s suite of crypto strategies.
“We are seeing a significant shift in investor sentiment towards digital assets, and we believe digital assets should be considered in modern portfolios,” said Greg Collett, president of BlockFi Nb.
The Securities and Exchange Commission has already approved the listing of shares of the exchange-traded fund linked to Bitcoin Futures (BTC) on exchanges based in the United States. This month, ProShares became the first company to list its Bitcoin Strategy ETF on the New York Stock Exchange, followed by Valkyrie’s Bitcoin Strategy ETF on the Nasdaq. Many expect VanEck’s crypto ETF to be next.
Although the regulator has only approved crypto ETF applications with exposure linked to BTC futures, it still has BTC ETFs under review from Galaxy Digital and Invesco, WisdomTree, Global X, Ark Invest , Kryptoin and others. BlockFi filed its own prospectus for a BTC strategy ETF with the SEC on October 8, with a decision expected by December 7 if the regulator does not extend or otherwise delay the deadline.
Related: $ 400 billion investment manager Neuberger Berman to allow crypto exposure through commodity-focused fund
BlockFi has faced regulatory backlash from state officials over allegations the company does not offer state or federal licensed security. In July, the New Jersey Bureau of Securities issued a cease and desist order preventing the company from onboarding new interest account clients. The Alabama Securities Commission and the Texas State Securities Board subsequently made similar allegations. BlockFi claimed its interest account was not a security.