According to a press statement issued by the Russian central bank, mutual funds should not be permitted to invest in digital assets.
The Bank of Russia cites investor protection
The Bank of Russia indicated in a news statement issued yesterday that the number of indexes in which mutual funds are permitted to invest should be increased from 42 to 79. In addition, the list of permitted assets should be increased. However, the news release cites an explicit prohibition on cryptocurrency investments:
Simultaneously, this sets a prohibition on Unit Investment Funds (UIFs), including those designed solely for qualified investors that invest in digital currencies and financial instruments whose value is determined by digital currency rates. Previously, the Bank of Russia advised against investing in such assets.
According to the Russian central bank, the new rules will “not only boost the investment potential of UIFs but will significantly strengthen investor protection.”
Russia will pass up opportunities
On the other hand, traditional investment funds are ecstatic about the prospect of investing in this new asset class. For example, the Texas Firefighters Pension Fund and two Virginia-based pension funds are looking for exposure to both Bitcoin and Ethereum.
Crypto-based investment instruments are also being considered for use in urban development. El Salvador’s president, Nayib Bukele, said last month that the country would issue Bitcoin-backed bonds to fund the building of Bitcoin City.
