Two major Russian insurance companies, Renaissance Life and BCS Life Insurance, have launched investment life insurance (ILIPs) that are linked to Bitcoin, according to a local media on July 2 report.
According to the report, the innovative policy enables investors to enable exposure to BlackRock’s Ishares Bitcoin Trust (IBIT), the largest Bitcoin ETF by assets.
These ILIPs are designed for people with a high neat-worthy who want to benefit from Bitcoin’s price movements without holding the digital assets directly.
The policy is linked to Bitcoin -Futures contracts that are traded on the Moscow Exchange (MOEX) and offer an alternative way to invest in the flourishing asset class.
How the policy works
The range of Renaissance Life, part of its “Cryptocapital” program, requires a minimum investment of 1.5 million rubles (around $ 19,000) and has a duration of two years.
If the value of IBIT-linked futures rises considerably, such as Bitcoin doubles in value, the investor could earn up to 2.4 million rubles (more than $ 30,000) before taxes.
However, the initial capital is protected if the market supports it and Bitcoin drops. Renaissance Life CEO Oleg Kiselev emphasized that policyholders would at least reclaim their full down payment.
On the other hand, BCS Life Insurance offers a similar product with a longer duration of three years and a higher minimum access of 3 million rubles.
In contrast to its rival, BCS makes it possible for portfolio to be in balance again during the policy period, giving investors more flexibility to adjust assets assignments in response to market shifts.
Rising bitcoin -interest
These developments come amid the growing demand for regulated financial instruments that offer Bitcoin exposure.
Other insurance companies use this trend and offer Bitcoin-linked investment products for their customers.
For example, meanwhile insurance launched A life insurance policy supported by Bitcoin last year, so that policyholders can borrow Bitcoin against their policy without making power gain tax. However, the loan balance is deducted from the death benefit upon the death of the policyholder.
This product shows that the interest in financial instruments supported by Bitcoin has risen, especially in the past year, because the American administration has adopted pro-Crypto policy and has surpassed Bitcoin’s price.
