• Russian investment management firm Finam management has unveiled a new fund intended to finance crypto mining operations.
• The fund seeks to raise 500 million rubles (over $6,6 million) which will be used to acquire mining hardware and pay for electricity and other operating costs.
• There is a high chance the fund will be approved and that the central bank of Russia will soften its attitude towards crypto mining.
Russian Investment Firm Unveils Crypto Mining Fund
Russian investment management firm Finam Management has announced the launch of a new mutual fund designed to finance crypto mining operations in the country. The fund requires qualified investors with a minimum investment 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. The rest of the money invested in the fund will be used to pay for electricity and other operating costs and service the fund.
Central Bank’s Attitude Towards Crypto
The Central Bank of Russia has previously warned against legalizing crypto, stating that it could undermine the country’s financial system. However, market observers believe there is still a high chance that the mutual fund for crypto mining will be approved by regulators and that the Central Bank may soften its stance on cryptocurrency in general.
Interest from Major Banks & Investment Companies
BitRiver, a company providing services for placement of mining equipment noted that there had been an explosive increase in interest from major banks, investment companies, and even from UK firms looking into investing in cryptomining as it can bring high rewards with minimal risk depending on electricity costs associated with it.
Mutual Funds That Invest In Blockchain Companies
Vladislav Kochetkov head of Finam Group said that rules regarding this mutual fund would be sent for approval after March 1st 2021 which should pave way for mutual funds investing in blockchain technology companies as well since they have already been approved by regulators earlier on.
Cryptocurrency Mining is gaining more traction as more major players are showing interest due to its potential profits when done right with careful consideration of associated risks such as obsolete hardware losing their effectiveness compared to new supercomputers etc.. With Mutual Fund Rules being sent out for approval after March 1st 2021 we can expect more clarity on how these investments can be made safely while staying within legal boundaries set by Central Banks across different regions