Russia’s leading bank, Sberbank, has decided to speed up its paces before 2021 by launching the first ETF tracking leading blockchain companies and making it available to Russian investors.
The Russian bank, Sberbank, has set up an exchange-traded fund (ETF) that tracks prominent companies in the cryptocurrency industry, such as Coinbase and Galaxy Digital.
This is the first product of its kind in Russia, which allows local investors to delve into the cryptocurrency market without having to buy, store or sell cryptocurrencies.
Russia has a Blockchain Investment Fund:
Sberbank has revealed that its exchange-traded fund (ETF) is called “Sber – Blockchain Economy” and is traded under the symbol “SBBE.”
This fund includes the securities of companies whose main activities are related to blockchain technology.
The index also consists of companies producing hardware and software for cryptocurrency mining and even entities that provide advisory services in the sector.
Some of the bigger names in the SBBE portfolio are US company Coinbase, software provider Digindex, and investment firm Galaxy Digital, a subsidiary of Mike Novogratz.
Commenting on this initiative, Evgeny Zaitsev, General Director of Sberbank, said:
No one has ever heard of the blockchain.
In my view, technology is evolving rapidly, and it is simply beyond the ability of the average investor to track.
Direct investments in Bitcoin or alternative digital currencies are associated with high risks.
As such, the new product will enable people to invest not in digital assets but in companies that ensure the development of blockchain technologies.
Russia wants to ban investment in crypto:
The ETF, offered by Sberbank, may be a good opportunity for locals to jump on the crypto bandwagon since the Russian Central Bank recently announced its willingness to ban direct crypto investments.
The financial regulator told the regulator that bitcoin and altcoins are engaged in malicious activities, and therefore should be banned from allocating funds to them.
Earlier this year, Elvira Napolina, director of the Russian Central Bank, warned investors about the risks posed by the crypto market, citing the increased volatility in its prices.
It went even further, calling investing in cryptocurrency the most dangerous monetary strategy.
A few months later, Bank of Russia board member Sergei Shvetsov issued a similar warning, arguing that buying bitcoin could be like entering a minefield.
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