Russian insurance giant launches Bitcoin-linked life insurance products, offering BlackRock IBIT exposure through Moscow exchange.

According to local media reports on July 2, Russia’s two major insurance giants Renaissance Life and BCS Life Insurance have launched investment-type life insurance products linked to Bitcoin (ILIPs).

Linking to the largest Bitcoin ETF, indirect exposure is popular

These innovative products allow investors to gain exposure to the world’s largest Bitcoin ETF - BlackRock iShares Bitcoin Trust (IBIT) without the need to directly hold digital assets. The products provide an alternative way to participate in this popular asset class by linking to Bitcoin futures contracts traded on the Moscow Exchange (MOEX).

How does the product work?

• Renaissance Life ( “Crypto Capital” Program ):
  • Minimum investment: 1.5 million rubles ( approximately 19,000 US dollars )
  • Term: Two years
  • Potential earnings: If the price of Bitcoin rises significantly (such as doubling), investors can earn up to 2.4 million rubles before tax ( over 30,000 USD ).
  • Principal protection: Even if the market performs poorly and Bitcoin falls, the insured can at least get back the full principal ( CEO Oleg Kiselev emphasized ).
• BCS Life Insurance:
  • Minimum investment: 3 million rubles ( higher threshold )
  • Duration: Three years ( duration longer )
  • Unique Advantage: Allows for portfolio rebalancing during the policy period, enabling investors to adjust asset allocation with flexibility according to market changes.

Russia’s Bitcoin investment demand surges

The launch of these products comes at a time when the market’s demand for regulated financial instruments that provide exposure to Bitcoin is growing.

• Other insurance companies are also following the trend: for example, Meanwhile Insurance launched Bitcoin collateral life insurance last year, allowing policyholders to borrow Bitcoin by collateralizing their policy without triggering capital gains tax (but the principal and interest of the loan will be deducted from the death benefit after the policyholder’s death).
• This indicates that especially in the past year, with the U.S. government adopting a pro-crypto policy and the Bitcoin price breaking through the $100,000 mark, interest in Bitcoin-related financial instruments has surged.