Bank of Russia clears way for crypto investments through mutual funds

Russia’s central bank is lifting restrictions on crypto investments via mutual funds by amending regulations governing their activities.

The monetary authority emphasized the move is part of a series of initiatives aimed at giving qualified investors wider access to crypto assets and derivatives.

Russia opens another door for cryptocurrency investments

The Central Bank of Russia (CBR) is removing regulatory obstacles to investing in financial instruments tied to the value of cryptocurrencies.

According to new rules drafted by the bank, such investments will soon be possible through mutual funds, although their share in the funds’ portfolios will be capped at 10%.

The document, published by the authority on Tuesday, also expands the list of non-exchange-traded securities, in which retail mutual funds will be allowed to invest.

In a press release, the authority emphasized that the measures had been discussed with market players and urged for comments and suggestions by December 9.

The proposal, for which the CBR seeks feedback, updates the current regulation “On the composition and structure of assets of joint-stock investment funds and assets of mutual investment funds.”

“The Bank of Russia is significantly changing the opportunities for participants in the collective investment market,” the Kommersant business daily noted in an article.

The most significant amendment envisages expanding the range of assets to include derivative instruments tracking the prices of digital currencies, the newspaper added, highlighting:

“The legalization of cryptocurrency as a financial instrument, albeit in the form of derivatives, has undergone a difficult transition this year. From a ban on such products and allowing trading only for highly qualified investors, to a relaxation of these requirements, and now to permitting their use in mutual funds.”

Moscow on route to thoroughly regulate crypto investments

The Bank of Russia, which used to be the strongest opponent to legalizing crypto among regulators in Moscow, has been gradually softening its stance in the past months.

It proposed establishing an “experimental legal regime” (ELR) for cryptocurrency transactions and investments in March and authorized the offering of digital-asset derivatives in May.

This gave a narrow category of “highly qualified” investors access to crypto. Russian authorities are now discussing admitting other investors to the market as well, as reported by Cryptopolitan.

Statements by CBR officials in October and November revealed the regulator plans to allow commercial banks to work with cryptocurrencies and mutual funds to invest in their derivatives.

The authority also made it clear it expects lawmakers to adopt new legislation comprehensively regulating crypto investments in 2026.

The existing ELR may soon become redundant, following the adoption of the new regulations, as recently indicated by the central bank’s governor, Elvira Nabiullina.

Furthermore, the derivatives currently traded in Russia are based on foreign funds and indices, but the CBR now wants to let financial firms offer products directly linked to cryptocurrencies.

Trend gets positive response from financial sector

Market participants are reacting positively to the long-awaited warming of the Central Bank’s attitude toward digital currencies, Kommersant remarked.

The crypto-based instruments that will be offered via mutual funds may be of interest to Russian investors who seek exposure to global assets but do not want to bear infrastructure risks, noted Artem Mayorov, director of asset management at Ingosstrakh Investments.

While Russian investors can already access crypto assets offered in partnering countries, lifting the restrictions for domestic funds will bring liquidity back to the Russian market, according to Dmitry Tselishchev, managing director of the investment company Rikom Trust.

However, the analysts do not expect a great demand for these instruments at this point, given the significant crypto market decline over the past few weeks.

“This asset class carries increased risk, and it’s entirely reasonable to set a 10% limit here,” pointed out Alexander Lavrov, investment director at the Vostok-Zapad Asset Management firm.

Derivatives based on Bitcoin (BTC) and Ethereum (ETH) appear to be the most promising, the Russian daily commented, reminding that futures on foreign exchange-traded funds (ETFs) tracking the two leading cryptocurrencies by market cap are already traded on Russian exchanges.

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