Russia’s largest bank, Sber has launched the first exchange-traded fund on the Russian stock market. It has its very own ticker – SBBE. This ETF follows the Sberbank Blockchain Economy Index, which has been developed by SberCIB.
Investors in Russia can now make money on the blockchain economy, minus the challenges that come with direct development, purchase, and storage, etc. The blockchain economy index is a giveaway. It is used in a wide range of industries to solve all sorts of problems. Blockchain economy index can protect personal data, confirm copyright to create platforms for the Internet of Things (IoTs) and online voting. The index includes companies producing hardware and software for mining and creating cryptocurrencies. Some noted issuers include Digindex, Coinbase, and Galaxy Digital.
Evgeny Zaitsev, General Director of Sberbank Asset Management, acknowledged that blockchain technology is developing very rapidly and dynamically. He believes this is beyond the power of an ordinary investor to keep track of it. Zaitsev said there are high risks associated with direct investments in crypto assets. And it is difficult to independently assess them.
As such, Sber proposes to invest in companies that focus on the development of blockchain technologies. Zaitsev explained that an ETF is available to anyone because of its manageability and transparency.
The blockchain ETF comes after the Sber Asset Management executive Vasily Illarionov, in mid-December, had revealed the bank’s plans. It should be noted that the ETF does not fall under the Bank of Russia’s restrictions. The ETF can also be offered to retail investors.