The Moscow Exchange, Russia’s largest stock market, offers new crypto futures contracts based on the recently introduced Bitcoin index.
The announcement comes after the exchange was based on the rise in investors’ interest in the first such products issued in early June and the famous Bitcoin ETF.
Moscow Exchange Bitcoin Index Futures Launched
The Moscow Exchange (MOEX) was soon announced to Russian investors in an interview with the business news portal RBC, which was released on Tuesday.
The platform’s own Moscow Exchange PFI Bitcoin Index (MOEXBTC), which was first calculated on June 10, will serve as the underlying asset for the new equipment, the executive further revealed.
This is the second offering of its kind by Moex after it launched trading for Bitcoin Futures earlier this month. On June 4th, the exchange began futures contracts for Bitcoin ETF (Exchange Sales Fund) of American investment giant BlackRock.
Krekoten explained its decision to expand its lineup with investor demand. At the end of the first day of trading, the volume of Bitcoin futures exceeded 420 million rubles (over $5.3 million). Detailed top manager:
“Since then, trading volumes have totaled around 7 billion rubles. More than 10,000 qualified investors have traded.”
The figures are similar to those for some equipment that have been traded in exchanges for several months, the report says. Krecoten emphasized:
“Yes, we’re looking at the interest now… these are very good indicators for such a short period of time, and instruments are circulating in the market.”
BlackRock’s iShares Bitcoin Trust (IBIT) is the largest Bitcoin ETF with managed capital. It owns over $70 billion in Bitcoin, accounting for more than half of all US Bitcoin ETF capital as of June 23, according to data from the Crypto Investment Research Platform SosoValue.
Based on Bitcoin (BTC), the leading cryptocurrency by market capitalization, Spot ETFs provide exposure to crypto assets through stocks offered on major exchanges such as Nasdaq and NYSE. To issue shares, the funds must be purchased in Bitcoin. Demand for these products created a significant influx of capital into the crypto market, and became a major driver of last year’s growth.
Moex plans to offer more crypto-related products
The Moscow Exchange will launch mutual funds and structured bonds focused on cryptocurrency indexes. This is currently being discussed with capital management companies, according to the RBC report.
Vladimir Krekoten said the necessary infrastructure is already in place. At the same time, he emphasized that the development of this segment will depend on both market demand in the Russian Federation and on the attitudes of financial regulators.
The decision by the Russian Central Bank to approve the provision of crypto-derivatives has sparked competition among key players in the financial sector, including Russia’s largest bank, SBER, and Russian broker Finham.
Sberbank already issues structured bonds, whose yields are tied to the value of Bitcoin, taking into account fluctuations in the exchange rate between the Russian ruble and the US dollar. The bonds are listed on the Moscow Exchange.
All cryptocurrency derivatives are currently only available to “highly qualified” investors. The criteria that fall within this category have not yet been officially approved, but it is clear that the product is not intended for ordinary Russians.
In March, the Bank of Russia proposed a threshold of 100 million rubles ($1.25 million) in securities or deposits and 50 million rubles of annual income for individuals who wish to acquire crypto assets and derivatives under Russia’s special “experimental legal system.”