• Russian Investment Firm Finam Management has unveiled a crypto mining mutual fund in order to finance crypto mining operations in the country.
• The fund requires investors to put in a minimum of 300,000 rubles (approx. $4,000).
• BitRiver reported an increase in interest from major banks and investment companies towards crypto mining due to its estimated 50% year-on-year profitability.

Russian Investment Firm Launches Crypto Mining Mutual Fund

According to Russian business outlet Kommersant, Russian investment management firm Finam management has unveiled a new fund intended to finance crypto mining operations in the country. The fund will be available only to qualified investors who can invest a minimum of 300,00 rubles (approx. $4,000). It hopes to raise 500 million rubles (over $6,6 million) which will be used to establish an LLC that will acquire mining hardware and lease them as well as pay for electricity and other operating costs and service the fund.

Central Bank of Russia Hostile Towards Crypto

The report brought attention to the lack of regulation in the crypto industry and that the Central Bank of Russia is hostile towards crypto. Russia’s central bank recently warned against legalizing crypto, stating that the move could undermine the country’s financial system. According to Kommersant, the fund’s launch is still subject to regulatory approval in Russia.

Industry Observers Believe Fund Will Be Approved

Industry observers believe there is a high chance the fund will be approved and that the central bank will soften its attitude towards crypto mining. The Russian central bank previously banned the inclusion of digital assets in mutual funds; however, some mutual funds that invest in companies dealing with blockchain technology have been approved. Vladislav Kochetkov, head of Finam Group said that rules for launching this mutual fund would be sent for approval after March 1st 2021 .

Increased Interest From Major Banks & Investment Companies

BitRiver noted that there had been an explosive increase in interest from major banks, investment companies for their services related with placement of mining equipment. Artem Mayorov director of asset management department at UK states that profits generated by current bitcoin equipments & exchange rate can reach up-to 50% annually depending on electricity costs associated with it .

Conclusion

This new mutual fund provides an opportunity for qualified investors who are interested investing their money into profitable sector like cryptocurrency-mining but also brings risks involved such as high competition from Supercomputers which could make current equipments obsolete thus reducing their overall effectiveness & profitability . Finally , this new Mutual Fund is still subject for Regulatory Approval by Central Bank Of Russia before it launches making it uncertain whether it will get approved or not .