Moscow Exchange officially launches bitcoin futures trading for high-level investors, marking a new step of Russia into the crypto derivative market.
Russia has officially entered the crypto derivative market as the Moscow Stock Exchange began offering Bitcoin futures contract trading from June 4. However, this product is currently limited to investors classified as "high-level", reflecting the cautious approach of the Russian government towards digital assets.
This move occurs in a context where the legal framework for cryptocurrency in Russia remains unclear. Although Bitcoin has been legally recognized as an ownable asset, the country has not yet permitted any official circulation platforms, and the Russian Central Bank does not view it as a legal payment method.
BlackRock's ETF Trading Mechanism
The new futures contracts launched by Moscow Exchange have a quite special design. Instead of directly linking to Bitcoin, they are tied to BlackRock's Bitcoin Exchange Traded Fund (Bitcoin ETF), specifically the Ishares Bitcoin Trust (IBIT). This mechanism allows payment in rubles while still pricing in USD, thereby avoiding direct handling of crypto assets.
This design shows the Moscow Exchange's cleverness in complying with current regulations while still meeting domestic investors' Bitcoin investment needs. Using BlackRock's ETF as a base asset also provides higher liquidity and reliability compared to direct Bitcoin trading.
Not only Moscow Exchange, but the St. Petersburg Stock Exchange is also conducting trials with futures contracts linked to digital assets, showing increasing interest from the Russian financial system in this field.
Despite legal restrictions, cryptocurrency popularity in Russia remains very high. According to estimates, by the end of 2024, Russian citizens are holding approximately 2 trillion rubles in digital assets, demonstrating a very strong domestic crypto investment demand.
