Crypto lending firm BlockFi has formed a business with New York-based investment management company Neuberger Berman for the evolution and distribution of crypto products including exchange-traded funds (ETFs).

In a Mon annunciation, BlockFi said the joint venture, BlockFi Nb, expects to "launch crypto nugget management products, including ETFs and other traditional structures," giving investors exposure to crypto in their brokerage accounts. According to the 2 firms, the partnership will combine BlockFi'south retail and institutional crypto solutions with Neuberger Berman's suite of crypto strategies.

"We are witnessing a significant shift in investor sentiment towards digital avails, and we believe that digital assets should exist considered in mod portfolios," said BlockFi Nb president Greg Collett.

The Securities and Exchange Committee (SEC) has already approved shares of Bitcoin (BTC) futures-linked commutation-traded funds to exist listed on United States-based exchanges. This month, ProShares became the first visitor to listing its Bitcoin Strategy ETF for trading on the New York Stock Exchange, followed by Valkyrie'south Bitcoin Strategy ETF listing on the Nasdaq. Many look VanEck's crypto ETF to be adjacent.

Though the regulatory trunk has only approved crypto ETF applications with exposure linked to BTC futures, it withal has Bitcoin ETFs under consideration 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 conclusion expected earlier Dec. 7 should the regulator not extend or otherwise delay the deadline.

Related: $400B investment manager Neuberger Berman will permit crypto exposure through commodity-focused fund

BlockFi faced regulatory backlash from state officials regarding allegations the business firm was not offering a security licensed at the state or federal level. In July, the New Jersey Agency of Securities issued a cease and desist order preventing the firm from onboarding new interest account clients. Both the Alabama Securities Committee and the Texas State Securities Board subsequently made like allegations. BlockFi claimed its Interest Account is not a security.