Sberbank, the biggest banking and financial services provider in Russia and the post-Soviet space, has launched the first exchange-traded fund (ETF) giving investors access to the blockchain space in the country, media reported. The Russian banking giant’s new instrument holds company securities connected to cryptocurrencies and the underlying technologies.
Giant launches ETF tracking blockchain economy index
The blockchain ETF, called ‘Sber – Blockchain Economy,’ was created to give Russian investors an opportunity to make a profit from crypto without getting involved in the sale, storage, development, and acquisition of digital assets directly.
The ETF will track the so-called Sber Blockchain Economy Index. It incorporates securities of companies active in crypto and blockchain technologies. The bank explained:
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 covers entities issuing crypto assets, producers of crypto mining hardware and software, and businesses offering blockchain consulting services, the state-owned financial services provider added. The list includes crypto exchange Coinbase, Galaxy Digital, blockchain software developer Digindex, and other well-known names in the industry.
First of its kind on Russian stock market
The bank pointed out that its blockchain economy ETF, which will be trading on the Russian stock market under the ticker SBBE, is the first of this kind on it. While the fund’s currency is denominated in USD, traders and investors can buy shares in rubles through a Russian broker or the Sberinvestor app, the bank explained. The minimum share price is 10 rubles.
Central Bank governor reiterates hard stance on crypto investments
In October last year, Russian Central Bank Governor Elvira Nabiullina stated that the regulator was not prepared to allow the trading of a bitcoin ETF in the Russian Federation. She reiterated the monetary authority’s hardline stance on cryptocurrency investments in November.
Authority blocks card payments to crypto exchanges
According to a report, the Central Bank will move to block card payments to crypto exchanges. Deputy governor of the state financial authority Vladimir Chistyukhin has gone on record saying the Russian government doesn’t see a place for cryptocurrency on the country’s financial market.
In 2021, Bank of Russia recommended stock exchanges avoid listing and trading assets connected to crypto and instruments involving changes in crypto indices and in the value of crypto derivatives as well as cryptocurrency fund securities.
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