Sberbank, the largest bank in Russia, has rolled out the first blockchain exchange-traded fund (ETF) in the country. The financial institution announced this news on December 30, noting that the ETF is titled Sberbank – Blockchain Economy exchange-traded fund (SBIF). Reportedly, the SBIF will trade on the Russian stock market under the ticker symbol SBBE.
According to the announcement, this ETF aims to offer investors a chance to make money on the blockchain economy while helping them circumvent the challenges associated with the direct development, purchase, storage, and sale of digital assets. SBIF will follow Sber Blockchain Economy Index, which is developed by SberCIB.
Sberbank detailed that its Blockchain Economy Index comprises securities of blockchain-related companies. The bank further noted that blockchain technologies currently solve multiple problems, including protecting personal data, online voting, and creating platforms for the Internet of Things (IoT), among other use cases.
To this end, the index features companies in varied fields of the blockchain. These range from firms that produce mining hardware and software to companies that provide blockchain consultation services.
The bank pointed out that some of the firms that its index tracks include cryptocurrency exchange Coinbase, blockchain software developer Digindex, and crypto financial services provider Galaxy Digital, to name a few.
Cryptos are risky
Explaining why it decided to launch a blockchain ETF, Sberbank said,
There are hardly any people left who have never heard of blockchain. This technology is developing so quickly and dynamically that it is simply beyond the power of an ordinary investor to keep track of it.
The bank added that direct investments in crypto are associated with high risks and that it is difficult to assess them individually. With this in mind, the bank urged investors to avoid investing in cryptos and instead inject their funds into companies that foster the growth of the blockchain.
Touting SBIF, Sberbank said,
An exchange-traded fund is available to anyone due to its simplicity and low entry threshold, while you get a ready-made set of securities of promising innovative international companies that specialize in the development of fintech and breakthrough technologies.
Reportedly, SBIF will be priced in US dollars. However, Russian can buy shares for rubles through the SberInvestor application or any Russian broker. Each share will be worth 10 rubles.
This news comes as Russia continues treading carefully when it comes to crypto. At the start of 2021, president Vladimir Putin said malicious people could use crypto for money laundering or terrorist financing. The central bank of Russia also mutual funds from investing in cryptocurrencies.
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