Investment fund focusing on crypto mining to be set up in Russia – Mining Bitcoin News

The establishment of Russia’s first mutual investment fund dedicated to financing cryptocurrency mining is underway. According to a report from the Russian press, it will be available to qualified investors and will finance the acquisition of minting equipment.

Russian cryptomining industry to attract shareholders through investment funds

Work has begun on creating the first mutual fund for investments in cryptomining companies in Russia, the Kommersant business newspaper reported. It will act as a venture fund for the purchase of mining hardware through a special entity that will then lease the equipment.

The new closed-end fund will be established by Finam Management, which will register it with the specialized depository in March, article details. Only qualified investors will have access, with a minimum threshold of 300,000 rubles (almost $4,000).

The company intends to raise 500 million rubles (over $6.6 million) before incorporating the leasing company, explained Finam CEO Vladislav Kochetkov. Part of the money will be used to buy mining machines and the rest will be used to pay for electricity and maintain the fund.

The project is a unique offer for Russia, the publication noted. Management companies have previously created mutual funds focused only on businesses 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.

However, collective investment market participants believe that after the last year of sanctions, the monetary authority is likely to soften its stance on at least some crypto-related activities, such as mining, and approve the launch of the fund. Artem Mayorov, director of the asset management department of Ingosstrakh-Investments, told the newspaper that if that happens, his management company will also launch one.

Bitriver, the leading Russian mining operator and provider of hardware hosting services, revealed that there has been a serious increase in interest from the largest Russian banks, investment companies and management companies since the fourth quarter of 2022. Alexander Baryshnikov, the head of digitization project development, elaborated:

We are in the final phase of negotiations on the organization of a number of funds linked to investments in industrial mining.

The growing attention to crypto mining has been attributed to the sharp narrowing of investment opportunities in the domestic financial market, as well as the potentially high profitability of mining investments. Russia has certain advantages as a mining destination, including low-cost energy and a cool climate. A bill regulating the industry is under consideration in the lower house of the Russian parliament.

Do you think Russian regulators will approve the creation of the crypto mining investment fund? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.