The National Bank of Bahrain (NBB) has unveiled a pioneering Bitcoin-linked investment product tailored for institutional investors across the Gulf Cooperation Council (GCC).
This structured investment vehicle, a collaboration with digital asset firm ARP Digital, aims to give investors growth opportunities from Bitcoin's value movements while safeguarding capital during market downturns.
Hisham AlKurdi, NBB Group Chief Executive, remarked on the launch, highlighting its alignment with the bank's commitment to financial innovation and wealth management diversification in the region.
"This product underscores our focus on offering our wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape," AlKurdi stated.
The fund's introduction was announced during the Fintech Forward 2024 event, noting its exclusive availability to accredited investors.
The fund offers a moderate-risk investment strategy, offering a reasonable price increase and 100% protection against sinking losses, making it suitable for investors interested in Bitcoin price fluctuations.
Abdulla Kanoo, co-founder and co-CEO at ARP Digital, emphasized the security and strategic approach of the investment. "By leveraging our expertise in digital assets and NBB's extensive reach in the financial sector, we have created a product that introduces Bitcoin exposure within a highly secure framework," Kanoo explained.
ARP Digital, which received an operational license from the NBB in April, brings a wealth of experience in crypto trading, custody, and portfolio management to this partnership. This collaboration signifies a milestone in combining traditional banking strengths with innovative digital asset management in the GCC region.
The country has implemented clear regulations that balance consumer protection with commercialization needs. Crypto.com chief operating officer Eric Anziani, whose platform recently received a license from the Bahrain central bank, praised these efforts.
"Bahrain is gradually attracting more digital assets businesses thanks to its innovation-friendly crypto and fintech ecosystem," said Anziani.
Recent regulatory advancements in the UAE and the broader MENA region have also created a conducive environment for innovative financial products.
According to a Chainalysis report, MENA accounted for 7.5% of the global cryptocurrency transaction volume between July 2023 and June 2024, with a significant portion of these transactions attributed to institutional and professional investors.