Russian insurance companies introduce Bitcoin price-linked investment insurance products, expanding domestic cryptocurrency investment opportunities.
New product connecting to US Bitcoin ETF through futures contracts on the Moscow Exchange, for qualified investors and supports basic capital protection.
MAIN CONTENT
Russian insurance companies issue US Bitcoin ETF linked investment policies with high yields.
The Moscow Exchange expands its cryptocurrency futures portfolio, increasing market liquidity.
Only qualified investors are allowed to access crypto derivative products under strict regulation in Russia.
How do Russian insurance companies provide investment insurance linked to Bitcoin ETFs?
Renaissance Life and BKS Life Insurance launch investment insurance policies linked to US Bitcoin ETFs, emphasizing capital safety and high profitability.
Renaissance Life introduces the “Cryptocapital” program with a profit of up to 60% based on the growth of the US Bitcoin ETF over 2 years, requiring a minimum staking of 1.5 million rubles (about 19,000 USD). CEO Oleg Kiselev commits to repaying at least the principal amount if the Bitcoin price drops below the initial investment. Meanwhile, BKS Life Insurance offers a three-year insurance with a minimum investment of 3 million rubles (38,000 USD) linked to Bitcoin ETF futures.
Key conditions and benefits of Bitcoin insurance policy in Russia
Customers can adjust the asset allocation in the investment portfolio based on market fluctuations, helping to optimize returns and minimize risks.
These unique products target professional investors, expected to be available in the market before the end of this year, contributing to the development of the cryptocurrency sector in Russia.
How is the Moscow Exchange expanding its cryptocurrency futures offerings?
Moscow Exchange (MOEX) develops a series of futures contracts related to US Bitcoin ETFs and a Bitcoin index created by MOEX itself, supporting liquidity and smooth trading.
“These derivatives are attractive to both professional and qualified investors. In addition to the futures contracts linked to the iShares Bitcoin Trust ETF, we are considering expanding into other ETFs such as the BlackRock Ethereum ETF.”
Maria Patrikeeva, CEO of the Moscow Exchange, June 2024
One month after the Central Bank of Russia allowed cryptocurrency-based derivatives trading, MOEX has launched Bitcoin ETF futures trading with a daily volume of about 1 billion rubles (12.7 million USD). The further expansion of cryptocurrency derivative financial products is a strategic move to diversify tools for investors within the current legal framework.
Impact of regulations on access to cryptocurrency products in Russia
The strict protection policy of the Central Bank and the Ministry of Finance of Russia only allows qualified investors to access cryptocurrencies and related derivatives. However, current estimates indicate that Russian citizens hold over 25 billion USD worth of cryptocurrency assets, showing a significant demand in the market.
Comparison table of Bitcoin ETF linked investment insurance products from two Russian insurance companies
Company Product Type Term Minimum Investment Expected Yield Capital Protection Policy Renaissance Life Bitcoin ETF Linked Insurance (Cryptocapital) 2 years 1.5 million rubles (~19,000 USD) Up to 60% based on Bitcoin ETF growth Minimum repayment of 1.5 million rubles if Bitcoin price falls below BKS Life Insurance Bitcoin ETF Futures Linked Insurance 3 years 3 million rubles (~38,000 USD) Depends on Bitcoin ETF futures price Detailed capital protection policy not yet announced
Frequently Asked Questions
Who can purchase Bitcoin linked insurance policies in Russia?
Only qualified and professional investors are allowed to participate according to the regulations of the Central Bank of Russia.
What is the maximum profit from Bitcoin ETF linked investment insurance?
Renaissance Life's product promises returns of up to 60% based on Bitcoin ETF price fluctuations over two years.
Do investors have capital protection when Bitcoin price falls?
Yes, Renaissance Life's product commits to returning at least the principal investment amount if the Bitcoin price falls below.
What cryptocurrency products has the Moscow Exchange offered?
MOEX has now listed US Bitcoin ETF futures contracts and is developing futures contracts based on the Bitcoin MOEXBTC index.
What restrictions does the Central Bank of Russia have on the cryptocurrency market?
The bank only allows qualified investors to access cryptocurrencies and derivatives, in order to protect users from market risks.
Source: https://tintucbitcoin.com/bitcoin-cong-ty-nga-ra-mat-bao-hiem/
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