The largest bank of Russia is launching a blockchain exchange-traded fund (ETF) to track the performance of major crypto companies. This includes companies like Coinbase and Galaxy Digital.
This Government-backed major bank on Thursday stated that the new ETF links various blockchain and crypto industry firms. This includes hardware and software providers for mining and issuing crypto assets.
According to the reports, it is for the first time that a blockchain ETF will allow investors to make money without much difficulty. The recent developments will address several issues associated with direct development, buying, holding, and selling digital currencies.
Adding to that the Sber’s new ETF called “Sber-Blockchain Economy” will trade under the ticker SBBE. Furthermore, this will track the eponymous index developed by Sber’s investment subsidiary SberCIB.
So what does the blockchain ETF mean for the investors?
Some of the world’s biggest crypto companies, with the likes of the United States’ largest exchange, Coinbase; Mike Novogratz’s investment company, Galaxy Digital; and blockchain software provider Digindex will come under the umbrella.
SBBE will allow investors to buy shares with Russian rubles in the Sber Investor app or via “any other Russian broker.” The minimum price of one share will be 10 rubles which is about 0.013$.
According to sources, ETF will be available to any individual. As the Sber Asset Manager CEO Evgeny Zaitsev stated,
“Direct investments in crypto-assets come with high risks, so it’s difficult to deal with them on your own. As such, we offer to invest not in crypto but rather in firms that focus on the development of blockchain technologies”.
Earlier this month the Russian central bank banned mutual funds from buying cryptocurrencies like Bitcoin (BTC). It has also brought laws to discourage providing crypto exposure to either qualified or unqualified investors.
So news like this brought unprecedented joy to a lot of crypto maniacs within the country. appearing The news comes shortly after Sber Asset Management executive Vasily Illarionov disclosed the company’s blockchain ETF plans in mid-December. According to him the fund does not fall under the Bank of Russia’s restrictions and can be offered to retail investors.