Russian brokerage Finam is set to offer qualified investors structured notes linked to BlackRock’s Bitcoin ETF, amid unclear crypto regulations in the country.
Investment Opportunities for Qualified Investors
According to Anton Dorodnev, Finam's head of innovative products, the company will begin offering structured notes based on iShares Bitcoin Trust ETF (IBIT) by BlackRock on February 17. These notes will be exclusively available to qualified investors in Russia with a six-month maturity period. The minimum investment is 200,000 rubles ($2,200), with a 1% brokerage commission in rubles. To achieve a dollar yield of up to 20%, the Bitcoin ETF price needs to rise by at least one basis point at maturity.
Legal Challenges Amid New Products
Local industry experts say that the introduction of Finam's IBIT bonds may present legal challenges in Russia. While some consultants believe there are no legal issues with such products, others warn of risks in offering structured notes linked to cryptocurrency ETFs. Russia's crypto law 'On Digital Financial Assets', effective since 2021, does not classify crypto assets as securities, while structured bonds are considered securities. Lawyer Alina Laktionova explained that while the law doesn’t explicitly ban using crypto ETFs for structured bonds, it also doesn’t offer clear legal support for such products.
Prospects for Cryptocurrencies in Russia
Nevertheless, Russia has become more open to Bitcoin recently. In December 2024, the Finance Minister stated that local laws now allow using BTC and other digital assets for foreign trade. Finam also plans to launch similar products linked to spot Ether ETFs.
The introduction of new investment tools in cryptocurrencies in Russia could be a significant step towards expanding digital asset markets despite current legal challenges.
