Wall Street Bank of New York banking giant Mellon Corp (NYSE: BK) said the functionality of one of its publicly traded budgets had been affected by its lack of exposure to cryptographic stocks.
What happened: In a recent SEC presentation, the bank said that the BNY Mellon Opportunistic Small Cap Fund (MUTF: DSCVX) could have performed higher if it had invested in some Bitcoin shares.
“The fund’s functionality was also affected by the resolution not to maintain MicroStrategy, whose inventory increased when it announced that it had invested in bitcoin,” BNY Mellon said in the case.
MicroStrategy Incorporated (NASDAQ: MSTR) shares have risen by more than 439% since its first bitcoin acquisition for $250 million in August 2020.
BNY Mellon to the SEC also noted that investment in a gold mining company Alamos Gold Inc (TSE: AGI) hindered the fund’s performance, as the shares were affected by “low gold prices”.
The fund has achieved an overall decline of 34. 88% over the past six months, below its benchmark, the Russell 2000 Index, which recorded a 41. 69% decline over the same period.
“The fund performed below the index, mainly due to a variety of unfavourable inventories and sectoral allocation,” the fund’s portfolio managers said.
What’s more: Earlier this year, BNY Mellon announced that it would provide childcare for cryptocurrencies through its new corporate virtual assets unit.
A month later, the bank invested in cryptographic custodian Fireblocks from its Serie C financing cycle. $133 million.
“Product progression to link virtual and classic assets is critical to long-term conservation,” said Roman Regelman, managing director of asset service and digital director at BNY Mellon.