Cryptocurrencies are becoming more mainstream. BlockFi, the crypto lending company, is partnering with Neuberger Berman. The partnership aims to release a series of investment products like exchange-traded funds.
BlockFi has been making many headlines
Lately, BlockFi has been making many headlines. Recently filing with the SEC to list their “BlockcFi Bitcoin Strategy ETF.” This new fund will hold BTC futures contracts like those by ProShares and Valkyrie.
BlockFi has set up a new subsidiary to prepare for their mid-to-late December release. The company is Blockfi nb LLC, and its headquarters will be in New York City.
BlockFi will offer its ETF and other products as more firms are exploring crypto spaces.
“Currently in the markets we are witnessing a huge shift in investor view to digital assets. Also, there is demand to partner with trusted firms with proved crypto expertise. and institutional rigor and leadership in asset management.” Greg Collet, president of the joint company, BlockFi | nb, said.
The rise of crypto ETFs
ProShares (BITO) reaped more than $1 billion in assets within a few days. This made it the second most traded ETF debut.
The ETF may need to invest its assets in futures contracts with longer end dates. Yet, this could imperil its sense to track returns achieved by investors who hold Bitcoin.
Leah Wald, CEO of Valkyrie and ETF advocate, told reporters that buyer demand for Bitcoin is so robust. And another could see “2-3” new products reach similar total asset management (AUM).
Besides, there is VanEck’s Bitcoin Strategy ETF (XBTF) listing this week. Also, others will roll out in November, thus stiffening competition for market share with these new listings.
Collett said that the fund would rely on “cost-effective and convenient access” advantages. VanEck’s management fee is 0.65%. It already undercuts that of ProShares’ cost with their Valkyrie strategy at 0.95%. BlockFi could take even lower cuts than this to become an attractive candidate for investors seeking cheaper alternatives.
BlockFi and Neuberger declined to comment on their fee. However, a spokesman with BlockFi said that pension funds are going the crypto way.
The Fidelity report also highlighted this trend. The number of U.S pension funds that are showing an increased interest in crypto is only growing. Besides, many are asking how they can use crypto to invest more.
The recent survey of asset managers found out that many still have “a negative view” of digital assets. This is due to the volatility of these investments, according to Christine Sandler from Fidelity Digital Assets.