According to Cointelegraph, Russian retail brokerage Finam is preparing to introduce investment products linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT), marking the first opportunity for qualified investors in Russia to access spot Bitcoin ETFs. The company plans to offer structured notes based on the IBIT ETF starting February 17, as announced by Anton Dorodnev, Finam’s head of innovative products.
This new investment product is specifically designed for qualified investors in Russia and represents one of the initial IBIT-based structured notes with a six-month maturity period. Previously, Finam had allowed Russian clients to invest in BlackRock’s IBIT ETF through its platform, paving the way for more extensive crypto-linked investment offerings in the region.
The upcoming IBIT bond from Finam will be denominated in Russian rubles, with yields calculated in dollar terms based on the Bank of Russia's exchange rate. Investors could earn up to 20% in dollar yields if the Bitcoin ETF's price at maturity surpasses its launch price by at least one basis point. The minimum investment required is 200,000 rubles, approximately $2,200, with a brokerage commission of 1% in rubles. Additionally, Finam plans to roll out more products tied to Ether (ETH) spot ETFs, as stated by Dorodnev.
However, the introduction of Finam’s IBIT bond raises legal complexities within Russia. While some industry experts argue there are no legal barriers for such products, others highlight potential risks associated with offering structured notes based on cryptocurrency ETFs. Russia’s crypto legislation, "On Digital Financial Assets," which came into effect in 2021, does not classify crypto assets as securities, whereas structured bonds are considered securities. Local lawyer Alina Laktionova noted that although the law does not explicitly prohibit using crypto ETFs as underlying assets for structured bonds, it also lacks a legal framework to support such products.
In recent months, Russia has shown increasing openness towards Bitcoin, with the Finance Minister indicating in December 2024 that local laws permit foreign trade using BTC and other digital financial assets. This development reflects a broader trend of integrating digital currencies into Russia's financial landscape.
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