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The creation of Russia’s first mutual fund dedicated to financing cryptocurrency mining operations is underway. According to a Russian press report, it will be accessible to qualified investors and will finance the acquisition of coin minting equipment.
Russian Crypto Mining Sector Will Attract Shareholders Through Investment Fund
Work has started to set up the first mutual fund for investments in crypto-mining companies in Russia, business daily Kommersant reported. It will function as a venture capital fund for the purchase of mining equipment through a special entity which will then lease the equipment.
The new closed-end fund will be set up by Finam Management, which will register it with the specialized custodian in March, details the article. Only qualified investors will have access to it, with a minimum threshold of 300,000 rubles (nearly $4,000).
The company intends to raise 500 million rubles (over $6.6 million) before incorporating the leasing company, Finam CEO Vladislav Kochetkov explained. Part of the money will be used to buy mining machines and the rest will be spent on paying electricity and maintaining the fund.
The project is a unique offer for Russia, the publication notes. Management companies have previously created mutual funds focused solely on companies developing blockchain technology. In 2021, some tried to register funds for cryptocurrencies and their derivatives, but the Bank of Russia banned the inclusion of foreign crypto assets in mutual funds.
Collective investment market participants, however, believe that after the last year of sanctions, the monetary authority should soften its stance on at least some crypto-related activities, such as mining, and approve the launch of the funds. Artem Mayorov, head of the asset management department at Ingosstrakh-Investments, told the newspaper that if that happened, his management company would also launch one.
Bitriver, Russia’s leading mining operator and hardware hosting service provider, has revealed that there has been a serious uptick in interest from top Russian banks, investment firms and management companies since the fourth quarter. 2022. Alexander Baryshnikov, its head of digital project development, elaborated:
We are in the final stages of negotiations on the organization of a number of funds related to investments in industrial mining.
The growing focus on crypto mining has been attributed to the sharp reduction in investment opportunities in the domestic financial market as well as the potentially high profitability of mining investments. Russia has some advantages as a mining destination, including low-cost energy and a cool climate. A bill regulating the industry is pending in the lower house of the Russian parliament.
Tags in this story Bank of Russia, Crypto, crypto mining, Cryptocurrencies, Cryptocurrency, equipment, establishment, fund, Hardware, investment, investment fund, mining, mutual fund, Regulations, rules, Russia , Russian
Do you think Russian regulators will approve the creation of the crypto-mining investment fund? Tell us in the comments section below.
Lubomir Tassev
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