Banking Giant Sberbank Launch The First Blockchain ETF In Russia
Russian government-owned Sberbank has launched the country’s first exchange-traded fund (ETF) giving investors blockchain exposure, by holding securities of companies dealing with cryptocurrencies and blockchain technology.
Sberbank announced the launch of the Russia’s first blockchain exchange-traded fund (ETF) on the country’s stock market that gives an investor the opportunity to make money on the blockchain economy without the difficulties associated with the direct development, purchase, storage and sale of digital assets.
According to the announcement:
“The new exchange-traded fund follows the Sber Blockchain Economy Index, which is developed by SberCIB. It includes securities of companies whose main activities are related to blockchain technologies. Today, they are used in a variety of industries and solve a variety of problems – from protecting personal data and confirming copyright to creating platforms for the Internet of things and online voting.”
The index includes companies producing hardware and software for mining and creating cryptoassets, and even companies providing consulting services in the field of blockchain technologies. Well-known names in the space, like crypto exchange Coinbase, blockchain software developer Digindex, and crypto financial services provider Galaxy Digital, are on the list.
The fund’s currency is U.S. dollars but investors can buy shares with Russian rubles through the Sberinvestor application or with the help of any Russian broker, the bank detailed. The price of shares starts at 10 rubles.
Evgeny Zaitsev, General Director of Sberbank Asset Management, commented:
“There are hardly any people left who have never heard of blockchain. This technology is developing so rapidly and dynamically that it is simply beyond the power of an ordinary investor to keep track of it. Direct investments in crypto assets are associated with high risks, and it is difficult to independently assess them. Therefore, we propose to invest not in crypto assets, but in companies that ensure the development of blockchain technologies. An exchange-traded fund is available to anyone due to its simplicity and low entry threshold, while you get a ready-made set of securities of promising innovative international companies that specialize in the development of fintech and breakthrough technologies.”
The crypto-related instrument is being introduced after the head of the Central Bank of Russia, Elvira Nabiullina, stated in October that the monetary authority is not prepared to allow the trading of a bitcoin ETF in the Russian Federation. In December, the governor reiterated the regulator’s hardline stance on cryptocurrency investments and a report revealed that the CBR wants to block card payments to crypto exchanges.
“We don’t see a place for cryptocurrency in the Russian financial market,” Nabiullina’s deputy, Vladimir Chistyukhin, was quoted as saying by Russian media. Earlier this year Bank of Russia advised stock exchanges to avoid the listing and trading of instruments tied to crypto assets, changes in crypto indices, as well as the value of crypto derivatives and securities of cryptocurrency funds.
