According to a recent survey, more than half the non-qualified Russian investor portfolio is made up of investments in alternative assets like cryptocurrency. Half of respondents consider bitcoin and other digital currencies as potential hedges.
Russia: Cryptocurrencies surpass traditional stocks and currencies
A new survey by Investing.com found that more than half of Russian Federation’s portfolios are comprised of alternatives investments, such as real estate and crypto. These digital currencies lead the pack with 46% out of 1000 respondents describing them as a future hedge investment.
The study also revealed that 37% of people betting on alternatives assets see real estate buying as an efficient investment. About 47% of those surveyed considered gold reliable, especially in times of crisis. However, 27% stated that they never had any interest in investing their hard-earned money in gold, preferring to invest it instead in stocks and bonds.
Property has historically played the role of a hedge asset, but cryptocurrency is a clear trend in 2021, head of Investing.com Russia’s Anastasia Kosheleva has been quoted as noting. Her comments also highlighted the fact that digital assets outperform traditional stocks and fiat currencies.
Russian investors rank among the most active in crypto market
According to Bank of Russia, Russians make up the largest part of the market for digital currencies. Recent data from the regulator showed that there has been a $5 billion increase in crypto transactions per year by Russians. In its Financial Stability Overview for Q2 and Q3 of 2021, the monetary authority also highlighted the risks of investing in cryptocurrencies for both investors and the country’s financial stability.
At this point, it’s unclear whether or when the central bank intends to introduce restrictions on how much non-qualified investors can put into crypto assets. Russian lawmakers were rumored to be considering restrictions for crypto-investors private in early October. At the same time, the Bank of Russia had proposed a 600,000 ruble annual limit (about $8,000) and was seeking public feedback.
Russian investment in digital currencies is estimated to be between $300-500 billion according to Vladimir Ananyev of Exante, an analyst. He noted that they have experienced a sixfold increase in value over the last year. Ananyev also noted that both the market participation and the investment value have significantly increased.
Bitcoin (BTC) is the most preferred digital asset among Russian investors, but other coins are drawing more attention. A drop of 42% in the dominance rate for the cryptocurrency with largest market capitalization has confirmed this trend.
Russian officials are holding discussions to define legal standards for qualified investors on the cryptocurrency market. Ananyev said that the Russian Federation does not regulate the majority of foreign crypto platforms and will therefore not require retail investors to meet these requirements.
What do you think Russia is going to do about crypto-investors who are not qualified? Comment below to share your hopes and fears.
Images CreditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.