Bank of Russia has Stopped Mutual Funds from Investing in Bitcoin

Bank of Russia has Stopped Mutual Funds from Investing in Bitcoin

February 4, 2022 0 By Keith Jacobs

Multiple nations around the world continue to express their feelings and association with cryptocurrencies and decentralization in their own unique way. China did issue a very severe crackdown against cryptocurrencies in the past, and it shares the same stance right now; El Salvador, on the other hand, adopted Bitcoin as a legal tender, and it continues to support this decision, whereas Russia, South Africa, and South Korea have mixed feelings about cryptocurrencies.

There is a recent announcement from the Bank of Russia explaining how mutual funds in the country won’t be able to invest in Bitcoin. There was this summary provided to the Bank of Russia by the mutual funds association in the country that the qualified investors should be able to get controlled exposure to the crypto market. But the Bank of Russia has dismissed this request by saying that neither the qualified nor the unqualified investors regarding mutual funds could invest in Bitcoin.

The Bank of Russia continues to complicate its policies regarding cryptocurrencies, and Bitcoin investment and exposure have been next to nothing for institutional investors in Russia into the crypto market. An official statement was given on Monday by the Bank of Russia stating that mutual funds are exempted from any and all opportunities for the sake of investing in Bitcoin or any other cryptocurrency for that matter. The stance that was taken explained that mutual funds are secure investment portals, and people lay in their money into these schemes so they know that it would be safe and available to them when they most need it.

Given the volatility of the crypto market, it will only be a foolish request to succumb the investment of people into such a volatile and crude investment experience. What if the mutual funds start losing to the whims of the crypto market, and these whims could be extremely persistent given the market is in a bearish trend. As for the exchange-traded funds, the bank of Russia believes that these are somewhat more regulated investment bodies to consider than the crypto market itself.