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Blockchain technology has been able to convince the world with its incredible potential. Although many are skeptic about Bitcoin and Ethereum like crypto assets, the technology is being embraced by everyone and in every sector. Following the potential, Sber, a major Russian bank backed by the government of the nation, has established a blockchain exchange traded product. Notably, the financial instrument would track major crypto firms including Coinbase and Galaxy Digital.
New blockchain ETF will track eponymous index
Sber Asset Management has officially announced on Thursday, the launch of its new ETF product. Notably, the product is called Sber – Blockchain Economy.
The financial instrument will be traded under the ticker SBBE and will track major crypto players. Moreover, the firm also highlighted that the new ETF is linked to various blockchain firms, that includes hardware and software providers for mining and issuing digital currency.
The fund is set to track the eponymous index, which is developed by the Russian bank’s investment subsidiary, SberCIB. Furthermore, SBBE’s portfolio will include some of the world’s biggest players like Coinbase, Galaxy Digital, and the blockchain software provider Digindex.
Russians can buy shares with a minimum of 10 rubles
The currency of the latest blockchain ETF is the USD. Indeed, investors will be able to buy shares with Russian rubles in the SberInvestor app. In contrast, the residence can also purchase the ETF shares through any other Russian broker, with a mining price of 10 rubles ($0.013).
The announcement also highlights that the ETF will be the first in the nation for investors to make money through the blockchain market without difficulties associated with direct development, buying, holding, and selling virtual currencies.
According to Evgeny Zaitsev, CEO of Sber, direct investments in digital assets associates risks, and the process could be difficult to deal with as an individual. Hence, the firm offers a way through which individuals won’t just be able to invest in cryptocurrency but rather in firms focused on the development of the blockchain ecosystem.
Crypto ETF does not fall under BoR restrictions
The latest announcement came shortly after Sber’s executive Vasily Illarionov disclosed that firm’s blockchain ETF plans. Accoridng to Illarionov, the financial instrument does not fall under the Bank of Russia’s restriction, and can be offered to investors in Russia looking to diversify their portfolio. The Russian Central bank has previously banned mutual funds from buying digital assets.
