Stricter Rules for Mutual Funds
The Bank of Russia has officially stepped on the gas, enforcing a ban on mutual funds from dabbling in cryptocurrencies like Bitcoin (BTC). This recent announcement comes hot on the heels of their ongoing scrutiny designed to regulate investment opportunities in the fast-paced crypto sector.
No Crypto for You!
In a stunning move, the central bank has not only reiterated that mutual funds must steer clear of cryptocurrencies but has also expanded the list of assets that are now permissible for investment. Despite the options growing, fund managers received a clear message: cryptocurrencies and anything that resembles them on the financial market are off the table. This applies equally to both qualified and unqualified investors.
History of Hard Stances
It’s worth mentioning that the seeds of this ban were planted back in July 2021, when the Bank of Russia advised asset managers to exclude digital currencies from their portfolios. However, despite the absence of an official ban until now, a report from local news outlet RBC noted that no Russian mutual funds had ventured into crypto territory. Guess they weren’t feeling that adventurous after all!
ETF Landscape: The Silver Lining
Now, while mutual funds are keeping their distance from cryptocurrency, there is, however, a tiny glimmer of hope for investors looking for crypto exposure in the form of exchange-traded funds (ETFs). According to analyst Artem Deev from AMarkets, Russia’s crypto ETF landscape is as sparse as a desert, with only one industry-related ETF in existence thus far. Managed by BrokerCreditService, this fund flaunts investments in companies that dabble in decentralized data storage and blockchain technologies, including illustrious names like Jack Dorsey’s Block and PayPal.
Sber Bank: A New Hope for Investors
Amidst this crypto crunch, Russia’s largest bank, Sber, aims to break ground by launching its own blockchain-focused ETF named “Blockchain Economy.” Asset management head Vasily Illarionov proclaimed this fund would invest in stocks linked to blockchain adoption without falling prey to the central bank’s restrictive policies. Retail investors, rejoice, because this one appears to be up for grabs!
The Regulator’s Take
The bottom line is that the Bank of Russia remains dead set against cryptocurrencies. By stopping leading banks from offering crypto investment services, they’re clearly sending the message that the risks associated with digital currencies far outweigh the potential benefits for investors.
