The First Crypto ETF Was Launched in Russia

Sberbank, the largest banking and financial services provider in Russia and the post-Soviet space, has launched the first crypto ETF. The new fund aims to allow Russian investors to invest in cryptocurrencies without having to buy coins. The new instrument from the Russian banking giant holds securities of the company related to cryptocurrencies and their underlying technologies.

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Crypto ETF tracks blockchain economy index

The fund, called “Sber – Blockchain Economy,” works similarly to crypto ETFs in other countries. It gives Russian investors the opportunity to profit from digital currencies without having to deal with their purchase, storage and trading.

The crypto ETF is designed to track the Sber Blockchain Economy Index. It includes securities of companies involved in crypto and blockchain technologies. The bank explains:

It involves a variety of industries and solutions to many problems – from protecting personal data and validating copyrights to creating platforms for the Internet of Things and online voting.

The index includes companies that issue digital assets or make hardware for crypto mining, for example. It also includes blockchain consulting firms. The list includes crypto exchange Coinbase, Galaxy Digital, software developer Digindex and other well-known names in the industry.

The first fund of its kind on the Russian stock market

The bank pointed out that its crypto ETF, which will be traded on the Russian Stock Exchange under the ticker SBBE, is the first of its kind for this exchange. While the fund currency is the U.S. dollar, 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.

In October last year, the governor of the Russian Central Bank, Elvira Nabiullina, said that the regulator was not ready to allow trading of a bitcoin ETF in the Russian Federation. In November, she reiterated the monetary authority’s tough stance on crypto investments.

Russian central bank to block card payments on crypto exchanges

According to a report, the Central Bank will block card payments on crypto exchanges. Deputy Governor of the State Treasury Vladimir Chistyukhin has gone on record saying that the Russian government sees no place for cryptocurrencies in the country’s financial market.

In 2021, the Russian Central Bank recommended that exchanges avoid listing and trading assets linked to cryptocurrencies. Or track changes in crypto indices and in the value of crypto derivatives and securities of crypto funds.

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(Featured image by designerpoint via Pixabay)

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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