Home News Russian bank Sber launches blockchain ETF tracking Coinbase, Galaxy Digital

Russian bank Sber launches blockchain ETF tracking Coinbase, Galaxy Digital

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Sber, the largest bank in Russia and sponsored by the Russian government, is creating a blockchain exchange-traded fund (ETF) to track the success of prominent crypto firms like Coinbase and Galaxy Digital.

In fact, the new ETF is tied to numerous blockchain and crypto industry enterprises, including hardware and software providers for mining and issuing cryptocurrencies, according to Sber Asset Management, which made the announcement on Thursday.

Furthermore, the fund, dubbed “Sber — Blockchain Economy”, will trade under the ticker SBBE and track the SberCIB’s eponymous index.

Some of the world’s major crypto companies will be included in SBBE’s portfolio. Including Coinbase, the largest exchange in the United States; Mike Novogratz’s investment firm, Galaxy Digital; and blockchain software supplier Digindex.

Despite the fact that SBBE’s currency is the US dollar, investors will be able to buy shares on the SberInvestor app or through “any other Russian broker” using Russian rubles. According to the release, the initial share price is 10 rubles ($0.013).

The first ETF in Russia to enable investors to profit from the blockchain market

Sber’s blockchain ETF would be the “first ETF in Russia to enable investors to profit from the blockchain market. Without the obstacles associated with direct development, buying, holding, and selling digital currencies”, according to the statement.

“Direct investments in crypto assets come with a lot of danger. Therefore dealing with them on your own is challenging”. As a result, we recommend investing in companies developing blockchain technologies rather than crypto”, Sber Asset Management CEO Evgeny Zaitsev remarked. “Any individual” will have the permission to invest in the new ETF, he added.

Sber Asset Management chief Vasily Illarionov revealed the company’s blockchain ETF ambitions in mid-December, prompting this announcement. According to him, the fund is exempt from the Bank of Russia’s limitations and can be for sale to individual investors.

According to prior reports, the Russian central bank has prohibited mutual funds from purchasing cryptocurrencies. Such as Bitcoin (BTC) and providing crypto exposure to qualified or unqualified investors.

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