Russia's Investors Pour $16 Million into Bitcoin Futures in Less Than a Month

Investors in Russia have shown significant interest in Bitcoin futures, with a total of $16 million committed to these derivatives in less than a month of trading. According to the Central Bank of Russia, the majority of these investments have been made by private individuals, who account for 97% of the total volume of long positions. The trading of these futures, which are linked to the value of Bitcoin, began on June 4 when the Moscow Exchange launched contracts on the shares of BlackRock’s Bitcoin ETF expiring in September.

This development comes after the Central Bank of Russia allowed financial institutions to offer crypto derivatives to qualified investors in late May. However, the bank has been cautious, warning both financial firms and their clients against direct investments in digital assets due to their volatile and risky nature. The bank reiterated these concerns in its latest report, emphasizing that investments in instruments whose pricing depends on cryptocurrencies will also carry similar risks.

The report also detailed the distribution of investments among retail investors. The most common positions, held by the majority of investors, are under 500,000 rubles (below $6,500). However, private investors with larger portfolios, exceeding 100 million rubles, account for a significant portion of the invested funds. These investors are followed by other big players with capital ranging between 10 million to 50 million rubles. The central bank noted that the number of investors in these cohorts is relatively small, and the opposite short position is mainly occupied by non-resident legal entities.

Despite the interest in Bitcoin futures, financial regulators in Russia remain opposed to giving ordinary citizens access to cryptocurrencies or crypto derivatives. In March, the Central Bank of Russia suggested allowing a limited number of highly qualified investors to acquire and trade digital currencies like Bitcoin within the framework of an “experimental legal regime.” To fall into this category, private individuals would need to prove an annual income of 50 million rubles (over $600,000) or more and investments in securities or deposits exceeding 100 million rubles ($1.2 million).

A recent study showed that 52% of Russia’s qualified investors already have crypto in their wallets, and another 38% intend to do so in the future, bringing the total of those interested in crypto investments to 90% of the respondents. However, the Central Bank of Russia remains steadfast in its stance against Bitcoin, with its governor, Elvira Nabiullina, insisting that the monetary policy regulator has no current plans to add cryptocurrencies to its reserves. The bank also rejects any possibility of permitting the use of digital coins such as BTC for payments within its territory, outside the experimental legal regime.