Russian insurance companies launch insurance policies linked to Bitcoin, providing new investment avenues for high-net-worth individuals
Local media reported on July 2 that two major Russian insurance companies, Renaissance Life and BCS Life Insurance, have launched insurance products linked to Bitcoin, known as Investment Life Insurance Policies (ILIP), offering high-net-worth individuals a new way to benefit from Bitcoin price fluctuations without directly holding digital assets.
This product allows policyholders to gain benefits from Bitcoin price fluctuations through traditional insurance frameworks while avoiding the technological barriers and regulatory risks associated with directly holding digital assets.
These insurance policies allow investors to invest in the iShares Bitcoin Trust ETF (IBIT), which currently has the largest asset management scale globally, with the investment route provided by trading Bitcoin futures contracts available on the Moscow Exchange (MOEX).
Reports indicate that the crypto capital service offered by Renaissance Life requires a minimum investment of 1.5 million rubles (approximately $19,000) and a term of two years. During this period, if Bitcoin's price doubles, the investor's returns could reach up to 2.4 million rubles (over $30,000). If the market performs poorly and Bitcoin's price falls, investors can at least recover their entire principal.
The similar product launched by BCS Life Insurance has a three-year term and requires a minimum insurance amount of 3 million rubles, allowing for portfolio rebalancing during the policy period, providing greater investment flexibility.
In addition, other insurance companies are also leveraging this trend to offer Bitcoin-related investment products. For example, Meanwhile Insurance launched a service last year allowing policyholders to borrow Bitcoin using their policies as collateral, thus exempting investors from capital gains tax.
Overall, with the U.S. government's support for cryptocurrency policies and Bitcoin's price surpassing $100,000, interest in Bitcoin-supported financial instruments among governments, banking institutions, and investors is surging.
In the future, we may see more similar innovative products emerge, further promoting the integration of cryptocurrency with the traditional financial system.
