Sberbank is the first bank in Russia to launch a blockchain-focused exchange-traded fund (ETF).
The ETF tracks the Sber Blockchain Economy Index, providing investors exposure to organizations like Coinbase and Galaxy Digital, which operate in the cryptocurrency space.
Sberbank, Russia’s largest bank, has launched a blockchain exchange-traded fund (ETF) that tracks famous cryptocurrency companies including Coinbase and Galaxy Digital. This is the first product of its kind in the country, Russia, allowing Russian investors to participate in the digital asset market without having to buy, hold, or sell tokens.
Is there a Blockchain ETF In Russia?
The exchange-traded fund (ETF) is dubbed “Sber – Blockchain Economy” and trades under the ticker SBBE, according to Sberbank. The ETF is based on the bank’s investment unit SberCIB’s eponymous index. Securities of companies whose major activities are related to blockchain technology are included in this category.
Organizations that make gear and software for mining cryptocurrencies, as well as companies that provide consulting services in the field, are included in the index.
The US exchange Coinbase, the blockchain software supplier Digindex and Mike Novogratz’s investment firm Galaxy Digital are all part of SBBE’s portfolio.
Sberbank’s General Director, Evgeny Zaitsev, commented on the project, saying that “hardly anyone remaining has never heard of blockchain.” According to him, technology is fast evolving, and a regular investor’s ability to keep up with it is simply insufficient.
Direct investments in bitcoin or alternative currency, he noted, are fraught with danger. As a result, the new product would allow customers to invest in companies that “guarantee the development of blockchain technologies,” rather than digital assets, according to the CEO.
Russia wants to prohibit cryptocurrency investments.
Since Russia’s central bank recently stated its willingness to prohibit direct digital asset investments, the ETF established by Sberbank could be an excellent option for locals to jump on the bitcoin bandwagon.
According to the banking institution, bitcoin and altcoins are used in nefarious actions, and hence assigning cash to them should be prohibited.
Elvira Nabiullina, the head of Russia’s central bank, urged investors earlier this year to be wary of the crypto market’s hazards, citing the increased volatility of the assets’ pricing. She went on to say that investing in cryptocurrencies is the riskiest monetary plan.
Sergey Shvetsov, a member of the Bank of Russia Board of Directors, struck a similar note of caution a few months later. Purchasing bitcoin, he suggested, is like “entering a minefield.”