Russia’s largest bank launches its first blockchain-based ETF

Highlights 

• The First of its kind will be traded on the Russian stock exchange under the ticker SBBE
• SBBE is set to follow the Sber Blockchain Economy Index 
•  The Launch of the ETF comes amidst the growing uncertainty in the Russian markets. 

The world of cryptocurrencies picked up traction to the mainstream when high market capitalizations of various tokens hit a record high in 2021, however, the launch of ETFs related to the sector, the first one is listed on the NYSE Arca by ProShares, peaked cryptocurrencies into popularity.

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The ETFs give an opportunity to folks who just want to expose themselves to cryptocurrencies without actually holding any tokens, The ETF fever has reached the country of Russia, where the first of its kind is set to trade under the ticker of SBBE. 

SBBE will soon hit the trading floors of the Russian Stock Exchange (RSE) cultivated by the Sber Asset Management. The ETF distinct itself from others while it follows blockchain-based companies rather than other cryptocurrencies while following the Sber Blockchain Economy Index (SBEI) developed by SyberCIB.

 As it happens to be a blockchain-based ETF, it also garners exposure towards crypto-centric companies including CoinBase & Galaxy Digital in combination with various other blockchain-exclusive companies such as Digidex & a number of others mining companies as well. The firm also aims to provide consultation services in the ambit of digital assets & products. The bank further stated that its main mission behind such initiatives remains to ease profit-making without exposing investors to direct difficulties like purchase, storage, the difficulty of storing their private keys, etc. 

Sber Asset Management’s General Director, Evgeny Zaitsev further pointed out that investing directly into crypto assets is extremely risky & is difficult to assess independently. Therefore, the firm opts to invest not in tokens but in companies that develop the necessary models like the blockchains to do so.  

The launch of such an ETF comes at a crucial time of uncertainty evolving in the country, where a barrage of contradictory opinions circulates the locals of Russia or investors looking forward to financing Russian startups in the country. Legislators of The State Duma, the lower house of the Russian parliament proposed to consider mining of cryptocurrencies as an entrepreneurial activity while also imposing taxes & sky-high electricity costs on such businesses. 

However, the central bank of Russia has been on the contradictory side, with governor Elvira Nabiullina stating the obvious risks associated with the markets of cryptocurrencies & the fact they facilitate malicious activities like money laundering, funding terrorism, etc. However, the space remains active while $5 billion worth of local transactions have taken place through cryptocurrencies.