Russian Banks Pioneer Retail Investment Offering Crypto Funds

The banks started testing a number of crypto-enhanced products that frame an investment fund portfolio based on six currencies, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. This is likely to boost their crypto market cap and the price, as reported in the Russian media outlet - Kommersant.

The move comes as Russia gets ready to finalize the approval and launch of cryptocurrency and blockchain regulations, which legalize digital investment assets.

“We want to offer our clients a completely transparent entry point for digital assets, fully in compliance with regulatory requirements and which allows investment within Russia in a product of their interest.”, Anna Ivanchuk, Deputy Head of Private Banking, commented for Kommersant. 

Alexey Prokofiev, Managing Partner at AddCapital, further explained that customers actually receive a share of the fund.  

This is a significant step in the modernization of Russia's banking industry. The country’s history of slow and unstable governmental position on digital financial assets has driven banks to avoid different blockchain experiments until the end of last year.

The first steps in banking transformation started at the end of January when Sberbank announced the launch of a crypto exchange option via its Swiss branch for institutional investors.

“I don’t buy cryptocurrency anymore, and I wouldn’t recommend doing so to anyone who does not like playing at a casino”, Herman Gref, Sberbank's President, added.