Russia Excludes Cryptocurrencies from National Wealth Fund Amid Volatility Concerns, Stocks Dip

Russia has decided to exclude cryptocurrencies from its National Wealth Fund (NWF), citing concerns over volatility and liquidity. The country's Deputy Finance Minister, Vladimir Kolychev, clarified that the Ministry of Finance has no plans to alter the NWF’s investment structure to accommodate crypto due to their high volatility. Kolychev emphasized that the fund prioritizes stability and avoids high-risk investments, stating that sovereign reserves should consist of assets that can be quickly liquidated without significant price swings, making crypto unsuitable for the fund at this stage.

As of March 1, 2025, the NWF managed assets worth 11.88 trillion rubles. Liquid assets accounted for 3.394 trillion rubles, representing 1.6% of Russia’s projected GDP. Kolychev also dismissed speculation about a government-backed crypto reserve, suggesting that if such a plan materialized, it would fall under the central bank’s jurisdiction rather than the finance ministry.

Despite the finance ministry's stance, Russia has shown a broader embrace of cryptocurrencies. The country has implemented taxation policies for crypto transactions and Bitcoin mining while leveraging digital assets to navigate Western sanctions. Some Russian lawmakers have pushed for a strategic Bitcoin reserve to counter economic sanctions and inflation, arguing that digital assets could provide financial resilience during geopolitical uncertainty.

Kolychev’s statement comes at a time when discussions about sovereign crypto reserves have gained traction globally. This move signals a clear shift towards viewing bitcoin as a strategic asset rather than a disposable holding.