Sber Asset Management Launches First ETF In Russia

Crypto is starting to be traded on the Russian Exchange. (photo; doc. unsplash)

JAKARTA – Sber, a Russian government-backed company, and the country's largest bank, launched a blockchain exchange-traded fund (ETF) to track the performance of big crypto companies, such as Coinbase and Galaxy Digital.

Sber Asset Management officially announced the news on Thursday, December 30, and stated that the new ETF is tied to various blockchain and crypto industry companies, including hardware and software providers for mining and issuing crypto assets.

Called “Sber — Blockchain Economy”, the fund is set to trade under the ticker SBBE and will track the eponymous index developed by Sber investment subsidiary SberCIB.

The SBBE portfolio will include some of the world's largest crypto companies, including the largest US exchange, Coinbase; Mike Novogratz's investment firm, Galaxy Digital; and blockchain software provider Digindex.

While the currency of the SBBE is the US dollar, investors will be able to buy shares with Russian rubles on the SberInvestor app or through “other Russian brokers”. Share prices start at 10 rubles (IDR 1913), according to the announcement's notes.

According to the announcement, the Sber blockchain ETF will be “the first ETF in Russia that will allow investors to make money on the blockchain market without the difficulties associated with the direct development, buying, storing, and selling of digital currencies”.

“Direct investment in crypto assets is associated with high risk, so it is difficult to handle it on your own. Therefore, we offer to invest not in crypto but in companies focused on developing blockchain technology”, said Sber Asset Management CEO, Evgeny Zaytsev. as quoted by Cointelegraph. He added that the new ETF will be available to "every individual".

The news comes shortly after Sber Asset Management executive Vasily Illarionov revealed the company's blockchain ETF plans in mid-December. He said that the funds do not fall within the limits of the Bank of Russia and can be offered to retail investors.

As previously reported, Russia's central bank prohibits mutual funds from buying cryptocurrencies such as Bitcoin (BTC) and provides crypto exposure to eligible or unqualified investors.