Sberbank Launched First-Ever Blockchain ETF In Russia

Sberbank launched first-ever Blockchain ETF in Russia and it will track the blockchain economy index that provides investors exposure to crypto companies like Coinbase and Galaxy Digital so let’s read more in today’s blockchain latest news.

The leading Russian Bank Sberbank launched first-ever blockchain ETF in Russia that will track prominent companies in the crypto industry like Galaxy Digital and Coinbase and this is the first product of its kind in Russia that allows local investors to delve into the digital asset market without having to buy, sell or store tokens. Sberbank disclosed the exchange-traded fund is called sber-Blockchain Economy and trades under the SBBE ticker. The ETF follows the index developed by the bank’s investment subsidiary SBerCIB which includes securities of companies whose main activities are related to blockchain technology.

The index consists of firms producing hardware and software for mining crypto and entities that provide consulting services in this sector. Some of the biggest names are a part of the SBBE’s portfolio and the US exchange Coinbase with the blockchain software provider Digindex and Mike Novograt’z investment company Galaxy Digital. Commenting on the initiative, Evgeny Zaitsev who is the Director of Sberbank, said there are “hardly any people left who have never heard of Blockchain.” He also thinks that the technology is fast developing and that it is beyond the power of ordinary investors to keep track of it.

He added that direct investments in BTC or other coins are associated with higher risks. As such, the new product will enable people to invest in companies that ensure the development of blockchain technologies. The ETF that was launched by the bank could be a good opportunity for the locals to hop on the crypto bandwagon because the central bank of Russia announced it is willing to ban direct digital asset investments. The financial institution claimed that BTC and altcoins are employed in malicious activities and these funds to them should be banned. Earlier this year, Elvira Nabiullina as the Chief of Russia’s Central Bank, warned investors to beware of the risks in the market citing the enhanced volatility of the asset’s prices and she even went further to describe crypto investment as the most dangerous monetary strategy.

A few months later, Sergey Shvetsov who is a member of the Bank of Russia Board of Directors argued that buying BTC is equal to entering a minefield.