The financial holding Bank of New York Mellon (BNY Mellon), with $2 trillion of assets under management, объяснил the lacklustre performance of the BNY Mellon Opportunistic Small Cap Fund, in part due to the absence of MicroStrategy shares, a company that invests in Bitcoin.
The BNY Mellon Opportunistic Small Cap Fund (DSCVX), which focuses on investing in small-capitalization company stocks, rose 35% for the period from September 1, 2020 through February 28, 2021. Its benchmark—the Russell 2000 index—gained 41.7% over the same period.
The fund’s performance was also hurt by the decision not to acquire MicroStrategy shares, whose prices rose in light of the decision to begin investing in the first cryptocurrency, according to the document.
According to BitcoinTreasuries, at the time of writing MicroStrategy owned 91,579 BTC, valued at nearly $5 billion — 2.2 times the purchase price. The company’s shares had risen 5.2x over the period. As of April 30, they were 12.7% lower than on February 28. During this period, Bitcoin’s price rose 18.5%.
Another reason for DSCVX’s lag behind the benchmark, according to BNY Mellon, was its position in Alamos Gold, which “deteriorated performance amid gold-price weakness” in the document.
ETF.com notes that 88 ETFs invested in MicroStrategy stock, on average 0.57% of their assets.
Back in February 2021, BNY Mellon announced adding Bitcoin custody service to its lineup.
In March this year, BNY Mellon invested in the custodian Fireblocks.
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