Bahrain launches first bitcoin investment fund in the Gulf
Bahrain has been proactive in establishing crypto banking regulations
Dubai: The National Bank of Bahrain introduces a bitcoin-pegged structured investment product designed to meet the increasing interest in cryptocurrency among institutional investors in the Gulf region.
Developed in collaboration with ARP Digital, a digital asset firm, this fund allows investors to benefit from any rise in bitcoin's price, with a cap at a specified threshold, while also ensuring full protection of their principal investment against losses.
In its announcement, the bank stated that this product is tailored for risk-averse investors looking to gain exposure to bitcoin without the volatility risks associated with market fluctuations, as reported by Bahrain News Agency.
While Bahrain may not match its neighbours in trading volume, it has been proactive in establishing crypto banking regulations. In 2019, the Central Bank of Bahrain (CBB) introduced a legislative framework to regulate and manage crypto assets within the country.
That same year, Rain Financial became the first company to obtain a licence to operate as a crypto asset service provider in Bahrain.
Since then, the CBB has issued licences to other operators, including CoinMena and most recently BitOasis. In March 2022, Binance, a global crypto exchange platform, received its licence from the CBB. Last month, Crypto.com was also granted a licence to operate in the country.