Russia To Establish Mutual Investment Fund Focused On Crypto Mining
Plans are underway to create the first mutual investment fund to finance cryptocurrency mining in Russia. Based on reports by the Russian press, the funds will be available to eligible crypto miners and help finance the purchase of crypto mining devices.
Financing Crypto Mining Through Investment Fund
According to reports from multiple local media outlets in Russia, work has started to set up the first mutual fund for investments in the crypto mining sector in Russia. The country’s leading news platform, Kommersant, reported that the initiative would operate as a venture fund to acquire mining hardware via a special private entity that will lease the devices to users.
The financing initiative will be close-end and overseen by Finam Management, which, as reports indicate, will register it with the county’s depository this month. However, only qualified miners can access the fund with a minimum of $4,000 (300,000 Rubles).
Furthermore, the firm seeks to raise over $6.6 million (500 million Rubles) before publicly announcing the leasing company, said Finam CEO Vladislav Kochetkov. Part of the funds will be used to acquire mining machines, and the rest for energy expenditures and the project’s operation.
Per the publication, the project is an exceptional offering for Russia. Management firms have previously established mutual funds focusing only on blockchain-based businesses. However, in 2021, some companies tried registering funds for cryptocurrencies and their related derivatives, but the Bank of Russia omitted to add foreign digital assets to mutual funds.
Participants in the mutual investment sector believe the nation’s central bank is ready to soften its stance after many years of sanctions on crypto-based activities like mining by approving the new fund.
Artem Mayorov, an investment expert, revealed that if the regulator approves the fund, his management firm, Ingosstrakh-Investments, will also launch its own.
Increase In Bank’s Crypto Interest
According to Bitriver, Russia’s leading crypto mining firm and hardware solutions provider, interest has increased from some of the country’s largest banks, investment firms, and management companies since the Q4 of last year. Bitriver’s head of digital project development, Alexander Baryshnikov, noted that the company is in its last stage of negotiation towards creating several funds related to investment in crypto mining.
The rising investment demand in crypto mining is attributed to the sharp drop in investment opportunities in the traditional financial market and the potential for high returns in mining investments. As a mining destination, Russia has some advantages over others due to the availability of low-cost energy and favorable weather condition.
Given digital assets’ role in the country’s financial system, Russia is trying to regulate the crypto industry. Meanwhile, the country’s lower house of parliament is reportedly reviewing a bill to regulate the virtual asset industry.
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us easily with Herald Sheets Facebook Messenger App. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.