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In a latest development, Russian brokerage Finam plans to offer structured notes linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT), aimed at qualified investors, despite unclear crypto regulations in Russia. This move will give qualified Russian investors their first chance to invest in spot Bitcoin ETFs.
Bitcoin ETF Notes for Qualified Russian Investors
Finam will begin offering structured notes based on BlackRock’s iShares Bitcoin Trust ETF (IBIT) on February 17, according to Anton Dorodnev, the company’s head of innovative products. These notes will be available exclusively to qualified investors in Russia and will have a six-month maturity period.
Finam had previously allowed Russian clients to invest in BlackRock’s IBIT ETF through its platform, marking progress toward more crypto-linked investment options in the country.
Finam’s upcoming IBIT bond will be denominated in Russian rubles, with the yield being calculated at the dollar equivalent based on the Bank of Russia’s exchange rate. Investors can earn up to 20% in dollar yields if the Bitcoin ETF price rises by at least one basis point at maturity.
The minimum investment is 200,000 rubles ($2,200), with a 1% brokerage commission in rubles. Additionally, Finam plans to launch similar products linked to spot Ether ETFs, according to Dorodnev.
Legal Challenges In Russia
However, Local industry experts say that Finam’s IBIT bond presents legal challenges in Russia. While Some consultants believe that there are no legal issues with such products, while others warn of risks in offering structured notes tied to cryptocurrency ETFs.
Notably, Russia’s crypto law “On Digital Financial Assets,” which came into effect in 2021, doesn’t 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.
Nevertheless, Russia has become more open to Bitcoin recently, with the Finance Minister stating in December 2024 that local laws now allow foreign trade using BTC and other digital assets.