Sberbank (OTCMKTS: SBRCY) one of Russia’s biggest banks, announced the launch of the nation’s first blockchain exchange-traded fund (EFT). The fund, now termed Sberbank Blockchain Economy EFT, has been assigned the ticker “SBBE” in the Russian Stock Market.
It is the country’s first exchange- traded fund and it aims to expose firms associated with blockchain technology. The firms can follow the Sber Blockchain Economy Index that SberCIB created to understand more about the fund.
The bank acknowledges the risk of investing in crypto
EVGENY ZAITSEV, Sberbank Asset Management’s General Director, stated that the bank does not plan to invest in crypto assets. However, it plans to invest in institutions that continue the development of blockchain technologies.
The bank acknowledges the high risk of investing in cryptocurrencies, such as the difficulty of assessing them independently. However, the exchange fund is available to investors due to its simplicity and low threshold.
The fund supplies various investors with the exposure required to trade with cryptocurrencies such as Coinbase, Blockchain software company Digindex, and Galaxy Digital. In addition, the Blockchain Economy index also provides enterprises with advisory services of the blockchain sector.
Due to a rise in interest in EFTs across the globe, investors gain exposure to cryptocurrency and blockchain organizations. Recently, other countries such as the U.S. have created several Bitcoin futures exchange-traded funds issued to investors.
Russia’s stand on crypto is still unclear
Russia has in the past opposed the use of cryptocurrencies for various reasons, such as its potential use in money laundering and terrorist financing. However, the country’s central bank has announced its intention to create a digital currency that ruble (CBDC) backs up.
In the previous months, Russia’s central bank started plans to prohibit cryptocurrency investment in the country. In addition, three months ago, the Bank of Russia collaborated with other Russian banks to delay payments that relay crypto exchanges.
Bank officials revealed the aim in doing so was to curb any emotional purchases that inexperienced investors had made. The bank of Russia also announced it aims to introduce legislation that regulates the circulation of digital assets in the country instead of banning them.