Russian banking giant Sberbank has presented the country’s first exchange-traded fund (ETF) giving investors access to the blockchain space. It holds securities belonging to companies involved in cryptocurrencies or the technology that supports them.
Sberbank Launches ETF to Track Blockchain Economy Index
Sberbank, Russia’s largest financial and banking services provider, announced the launch a new blockchain ETF. The new product, called ‘Sber – Blockchain Economy,’ aims to provide Russian investors with an opportunity to profit from the crypto sector without the need to get involved directly in the development, acquisition, storage, and sale of digital assets.
ETFs track the Sber Blockchain Economy Index, which tracks securities from companies that use cryptocurrencies or blockchain technology. “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 bank explained.
This index covers crypto mining software developers, companies that issue crypto assets and firms offering services related to blockchain. The list includes well-known figures in this space such as Crypto exchange Coinbase and Digindex, a blockchain software developer, and Galaxy Digital, a crypto financial service provider.
Sberbank stressed that the blockchain economy ETF (ticker SBBE) was the first such fund on the Russian stock exchange. The fund’s currency is U.S. dollars but investors can buy shares with Russian rubles through the Sberinvestor application or with the help of any Russian broker, the bank detailed. Shares start at 10 rubles.
Elvira Nabiullina from the Central Bank of Russia stated October that they are not ready to permit the trading of bitcoin ETFs in Russia. In December, the governor reiterated the regulator’s hardline stance on cryptocurrency investments and a report revealed that the CBR wants to block card payments to crypto exchanges.
“We don’t see a place for cryptocurrency in the Russian financial market,” Nabiullina’s deputy, Vladimir Chistyukhin, was quoted as saying by Russian media. Bank of Russia had advised stock exchanges earlier this year to refrain from trading instruments linked to crypto assets. They also recommended that they avoid changes in crypto indexes or the valuation of securities and derivatives of crypto funds.
Do you expect to see other offerings such as Sberbank’s blockchain ETF in Russia? Let us know your thoughts in the comment section.
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