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Leading Russian Bank Launches Nation’s First Blockchain ETF

Briefly-

  • The largest Russian bank, Sberbank, introduced the first blockchain ETF.
  • Russia maintains its harsh stance on crypto, but the central bank clarified no crypto ban plans.

On 30 December, the Russian largest bank, Sberbank, launched the country’s first-ever blockchain exchange-traded fund. The bank’s Asset Management statement declared the fund (Sberbank Blockchain Economy ETF) would be under the ‘SBBE’ ticker on the Russian stock market.

Moreover, the ETF promises multiple benefits to the citizens, exposing investors to blockchain-invested firms. The ETF tracks the bank’s Blockchain Economy Index designed by SberCIB Investment Research. That way, Russian investors can explore crypto-related businesses, including blockchain advisory enterprises, mining firms, and crypto asset managers. Some of the blockchain-associated companies include Coinbase, Digindex, and Galaxy Digital.

Sberbank Confirms the First Blockchain ETF

The announcement by Sber Asset Management highlights that the service exposes investors to the blockchain economy without challenges related to direct purchase, development, assets’ sale, and storage. Sberbank Asset Management’s General Director added that direct crypto investment carries high risks since assessing the coin independently is challenging. That is why they decided to escape crypto investment and deal with companies dealing with blockchain technologies. Moreover, anyone can interact with the exchange fund due to its low entry threshold and simplicity.

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Most nations globally appear interested in exchange-traded funds trading crypto and blockchain indexes. For instance, the US approved BTC futures ETFs this year after many rejected and delayed applications. Meanwhile, Canada authorized both Ethereum and Bitcoin ETFs. Investors think that these products have fewer threats than a direct investment in a single blockchain or crypto company and product.

Russia Still Skeptical about Crypto

Meanwhile, the recent step by Sberbank doesn’t change the harsh stance Russia has had against digital coins. The nation has been unfriendly on cryptocurrencies, saying the assets promote terrorist financing and money laundering.

Recently, the Russian central bank announced its plans to prohibit cryptocurrency investments. Furthermore, the bank highlighted its intentions to introduce a digital Ruble. Moreover, the bank joined hands with other commercial banks to delay payments towards cryptocurrency exchanges. The best thing is that Russia, like the United States, doesn’t have plans to ban crypto completely.

Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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