The first ETF focused on Blockchain technology was issued in Russia, which draws attention with its prohibitive approach towards cryptocurrencies.
The Russian government-backed country’s largest bank Sber Bank has announced that it has launched its Blockchain ETF to track the performance of major crypto companies such as Coinbase and Galaxy Digital.
The announcement stated that the Sber Bank ETF will be “Russia’s first ETF that allows investors to make money on the Blockchain market without the hassle of buying, selling and keeping cryptocurrencies.”
The fund, named “Sberbank Blockchain Economy”, will be traded under the code SBBE. SBBE will also include crypto mining companies and firms offering consulting services in the blockchain industry.
Although the fund is traded in US dollars, investors will be able to purchase shares using the “Russian ruble” through the “SberInvestor” application or any Russian broker. Sber Bank announced that the share price starts at 10 rubles ($0.013).
Evgeny Zaitsev, CEO of Sber Asset Management, said in his statement on the subject:
“Investing directly in crypto-assets involves high risk and these challenges are not easy to deal with on your own. Therefore, we propose to invest in firms that focus on the development of blockchain technologies, not crypto.”
Sber Bank stated that the Blockchain ETF does not fall under the restrictions of the Central Bank of Russia.
Because the Central Bank of Russia has announced that it has banned institutional funds from investing in Bitcoin in the past weeks.
*Not investment advice.