Cryptocurrency lender BlockFi has partnered with New York-based investment management firm Neuberger Berman to develop and sell crypto products, including exchange-traded funds.
In an announcement made October 25, BlockFi said the BlockFi | nb is expected to launch “crypto asset management products, including ETFs and other traditional structures” and enable investors to get exposure to cryptocurrencies on broker accounts. According to the two companies, the partnership will combine BlockFi’s retail and institutional crypto solutions with Neuberger Berman’s crypto strategy suite.
The Securities and Exchange Commission has approved the listing of the shares of the Bitcoin (BTC) -linked exchange traded fund on US stock exchanges. That month, ProShares became the first company to list its Bitcoin Strategy ETF for trading on the New York Stock Exchange, followed by the listing of the Valkyrie Bitcoin Strategy ETF on the Nasdaq. Many expect the VanEck crypto ETF to be the next.
While the regulator has only approved crypto ETF applications related to BTC futures, BTC ETFs from Galaxy Digital and Invesco, WisdomTree, Global X, Ark Invest, Kryptoin and others are still being reviewed. BlockFi filed its own prospectus for the BTC strategy ETF with the SEC on October 8, with a decision expected before December 7 if the regulator does not extend or delay the deadline.
Related: The $ 400 billion investment manager Neuberger Berman will enable crypto exposure through a commodity-oriented fund
BlockFi has faced regulatory backlash from state officials over allegations that the company failed to provide licensed security at the state or federal level. In July, the New Jersey Securities Office issued a cease and desist order lifting the company’s ban on accessing customers with new interest accounts. Both the Alabama Securities Commission and the Texas State Securities Commission later made similar allegations. BlockFi claims its interest account is not a security.