Russian Investors Get Access to BlackRock Bitcoin ETF Through New Bond
Russian investment company Finam has announced a new structured bond product linked to BlackRock's Bitcoin ETF, aimed at qualified investors. The bond will have a six-month term and will be denominated in rubles, with returns calculated in US dollar equivalents based on the Central Bank's exchange rate.
The minimum investment requirement for the new financial product is set at 200,000 rubles, with a 1% brokerage fee. The bond includes a capital protection feature that safeguards investors against moderate market downturns.
"If the price falls up to 30%, the investor will receive their invested capital back. In case of a stronger correction, the loss will be calculated not from the starting price, but from the protective barrier set at 70% of the structured bond's initial value," Finam representatives explained.
For market declines exceeding 30%, the loss calculation changes. Rather than being measured from the initial price, losses will be calculated from the protective barrier set at 70% of the bond's original value. This mechanism provides an additional layer of risk management for investors.
Finam has outlined several potential risks associated with the product. These include the possibility of no returns, reduced liquidity in the market, unfavorable market conditions, and default risk. The company aims to provide transparency about these risks to potential investors.
Looking ahead, Finam plans to expand its cryptocurrency-linked product offerings. The company has announced its intention to launch a similar product tied to Ethereum ETF in the future, though specific details and timeline have not been disclosed.
The news comes as the cryptocurrency investment landscape continues to evolve. In a related development, Nasdaq recently submitted an application on behalf of BlackRock to modify the structure of iShares Bitcoin Trust, seeking permission for in-kind redemptions. Additionally, Avalon Labs, a Bitcoin DeFi development project, is exploring the possibility of filing with the SEC to create the industry's first ETF backed by digital gold debt.
