Bitrabo Editorial
On Monday, the National Bank of Bahrain (NBB) revealed the introduction of its inaugural Bitcoin-linked structured investment fund. This initiative, created in collaboration with the digital asset firm ARP Digital, caters specifically to institutional investors within the Gulf Cooperation Council (GCC), which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
NBB Launches Groundbreaking Bitcoin Investment Fund
This fund represents a pivotal development in the financial sector of the GCC, marking the first instance of a national bank launching a Bitcoin-centric investment option. It is intended to give accredited investors the opportunity to gain exposure to Bitcoin while ensuring capital security. According to a local media report, the fund allows investors to realize benefits from Bitcoin’s performance, but with returns capped at a predetermined limit, all while maintaining full protection of their principal investment.
Hisham AlKurdi, Group Chief Executive – Markets & Client Solutions at NBB, highlighted the unique qualities of this investment product. He stated, “We are excited to launch this tailored structured investment, which merges digital asset exposure with capital protection. This offering showcases our commitment to providing innovative and secure options for our wealth management clients looking to diversify their investments amidst changing market dynamics. It reflects NBB’s ongoing role as a leader in financial innovation across the region.”
The Bitcoin-linked structured investment is part of NBB’s wider plan to enhance its wealth management services. This product particularly appeals to investors who are cautious about risk yet want to engage in Bitcoin’s potential upside without risking their initial capital amid market fluctuations.
The partnership between NBB and ARP Digital aims to transform the local investment landscape. Abdulla Kanoo, Co-founder and Co-CEO of ARP Digital, remarked, “Our partnership with NBB is set to revolutionize the regional market. By combining our digital asset expertise with NBB’s strong presence in the financial sector, we’ve developed a product that delivers Bitcoin exposure within a secure framework. This structured investment offers new opportunities for investors looking for a prudent approach to digital assets.”
The capital-protected setup of this fund addresses the common concern of Bitcoin’s volatility, providing a fresh avenue for clients eager to engage with digital currencies without excessive risk. Dalal Buhejji, Executive Director of Business Development for Financial Services at the Bahrain Economic Development Board, praised the launch as a noteworthy accomplishment.
“The introduction of this Bitcoin-linked Structured Investment exemplifies the immense potential of Bahrain’s dynamic financial services landscape, which fosters innovative solutions in a streamlined manner. This initiative symbolizes an effective blend of conventional financial methods and forward-thinking blockchain technologies, underscoring our pride in seeing local entities like NBB advance the sector through pioneering diversification and developments,” Buhejji expressed.
In recent months, Bahrain has been proactive in enhancing Bitcoin and crypto regulations, proving its dedication to promoting fintech innovation while safeguarding investors. Earlier this September, Crypto.com acquired a Payment Service Provider (PSP) license from the Central Bank of Bahrain (CBB), allowing it to offer e-money services and cryptocurrency prepaid cards. Additionally, Binance was granted a license to operate in Bahrain in April 2022.
Bahrain’s regulatory system is esteemed for striking a balance between fostering innovation and maintaining compliance. Since 2019, the CBB has instituted thorough guidelines for crypto-asset services, ensuring transparent business practices while adhering to anti-money laundering (AML) and combating the financing of terrorism (CFT) standards.
As of now, Bitcoin is trading at $62,500.
