Russian companies offer investment insurance contracts related to the value of Bitcoin, the leading cryptocurrency by market capitalization.
The new product expands Russian crypto investment opportunities, which have grown since central banks allowed the provision of derivatives based on decentralized digital assets.
Russian insurance companies offer policies linked to American Bitcoin ETFs
Two insurers, Renaissance Life and BKS Life Insurance, have announced crypto-related investment products in the Russian market.
Renaissance Life has launched Bitcoin Link’s life insurance under the “crypto capital” program. It offers a return of up to 60% on US Exchange Sales Funds (ETF) growth that tracks the price of Bitcoin (BTC).
The policy is valid for two years, with a down payment of a minimum of 1.5 million Russian rubles ($19,000), and the report details.
If a client doubles that amount and the value of Bitcoin during that period, they will ultimately receive 2.4 million rubles (over $30,000) before tax, explained the company’s chief executive, Oleg Kiselev.
The CEO also promised that if the value of the cryptocurrency falls below the down payment amount, investors will regain 1.5 million rubles.
Investors should spend at least 3 million rubles ($38,000) on a three-year policy related to Bitcoin ETF futures offered by BKS Life Insurance.
Holders may adjust the share of assets included in the policy’s investment portfolio throughout the entire period, depending on the market conditions.
According to a Russian company, the unique crypto products will be available to qualified investors by the end of the year.
Moscow exchanges to expand its crypto futures offering
The yield on the new investment life insurance policy is linked to the growth of BlackRock’s iShares Bitcoin Trust ETF (IBIT) stocks through futures contracts traded on the Moscow Exchange (MOEX).
Russia’s largest stock market began trading Bitcoin futures last month shortly after the Russian Central Bank approved the sale of crypto derivatives to “highly qualified investors” in late May.
Its initial offering is based on IBIT, the largest Bitcoin ETF with managed capital. The fund holds an estimated $70 billion in BTC, accounting for more than half of all US Bitcoin ETF capitals.
Later in June, the Russian platform announced that it would offer new futures contracts at its recently introduced Moscow Exchange PFI Bitcoin Index (MOEXBTC).
This week, Moscow Exchange Managing Director Maria Patrikeva revealed that the exchange is preparing to increase the number of crypto investment products listed.
Executives explained that current regulations in Russia allow the launch of derivative financial instruments, using cryptocurrency-related securities as underlying assets.
“These products are in demand from both professional market participants and qualified investors. In addition to futures contracts for ISHARESBITCOINTRUST ETFs, other funds can be considered, for example, Ether’s BlackRock ETFs.”
Patrikeeva emphasized that IBIT’s contract is already one of the top 30 offerings in the Russian futures market. Since its launch on June 4th, the product has already reached a daily trading volume of 1 billion rubles ($12.7 million).
Moex officials argued that the exchange would play an active role in the future development of the Russian market due to the existing regulatory framework of this new class of crypto-related assets.
Moscow’s financial authorities, namely the Bank of Russia and the Ministry of Finance, have stubbornly maintained that only qualified investors should have access to cryptocurrencies and their derivatives. However, recent estimates show that Russians already have more than $25 billion in code.