Russian brokerage Finam is set to launch investment products tied to BlackRock’s Bitcoin ETF, offering qualified investors in Russia exposure to spot Bitcoin ETFs.
Investment Structure and Expected Returns
The new product will be available as structured notes based on BlackRock’s iShares Bitcoin Trust ETF. Payouts will be in rubles, with yields calculated at the dollar equivalent according to the Bank of Russia's exchange rate. Investors can expect up to 20% returns in dollars if the Bitcoin ETF's price at the note’s maturity exceeds the launch price by at least one basis point. The minimum investment is 200,000 rubles, with a 1% brokerage commission.
Russia’s Crypto Laws and Regulatory Uncertainty
Finam's product poses a complex case due to legal perspectives in Russia. Experts indicate that the 'Digital Financial Assets' law does not classify crypto assets as securities, although structured notes are considered securities. There is no direct ban on using crypto ETFs as underlying assets for structured bonds, yet a clear legal basis is absent.
Prospects for Crypto Investment Growth in Russia
Recently, Russia has shown interest in utilizing Bitcoin and other digital financial assets. The Finance Minister stated that domestic legislation permits the use of BTC in international trade, underscoring potential growth and the broader adoption of crypto investments in the country.
Finam's launch of an investment product based on BlackRock’s iShares Bitcoin Trust ETF opens new avenues for Russian investors to engage with the crypto market, yet it also raises questions regarding the legal framework and regulation of crypto assets in Russia. Regulatory and legal structures will play a crucial role in the future adoption of such financial instruments.
