Investor Sidorov spoke about the risks for Russia due to the growth of the Ethereum cryptocurrency

The cost of the second most popular cryptocurrency, Ethereum, has updated its historical maximum, exceeding $4,950. Experts told Izvestia on August 25 how this could affect the Russian market and investor interest.

"The rising cost of ether (Ethereum. — Ed.) to a new historical maximum, of course, arouses the interest of Russian investors, but under the conditions of current regulation, cryptocurrencies in our country remain outside legal circulation. This means that the direct participation of citizens and companies in such transactions is limited by law, and the government consistently maintains a policy of preventing the use of cryptocurrencies as a means of payment. This position is aimed at protecting the financial system from the risks associated with high volatility and lack of transparency in the crypto market," said Fyodor Sidorov, a private investor and founder of the School of Practical Investing.

He stressed that the global dynamics of cryptocurrencies, including the growth of ether, has an indirect impact on Russia. As the expert noted, this affects investor sentiment: a proportion of individuals are interested in digital assets, which can stimulate the development of alternative instruments, in particular, digital financial assets (CFAs), which, unlike cryptocurrencies, have a legislative framework and are under the control of the Bank of Russia. Thus, attention to ether and other cryptocurrencies can be considered as an additional factor pushing investors towards legal digital instruments.

In addition, the growing interest in cryptocurrencies from the international market confirms the relevance of the trend towards digitalization of finance, and in this area, the Russian Federation is consistently forming its own model based on national infrastructures, where risks are minimized, and control and protection of investors are ensured.

Hype blinders: memcoins can deprive Russians of 100 billion rubles

More than half of the projects on the market are scams, and even drug dealers issue their coins.

Denis Astafyev, an entrepreneur, fund manager and founder of the SharesPro fintech platform, pointed out that the new historical maximum of ether increased the flow of capital from bitcoin and stimulated activity in related tokens and derivatives. He noted that for the Russian segment, this means an increase in over-the-counter and foreign operations, as there is no full-fledged crypto exchange for a wide audience in the domestic market.

"For retail investors, the main effect will be rather informational — the FOMO effect will work, fueling interest. However, they will be able to realize the demand mainly through offshore platforms. This is due to the high admission thresholds at the pilot sites, and the ongoing ban on payments in cryptocurrency within the country. Such a shift inevitably increases operational and legal risks for households," Astafyev said.

He also stressed that the current pilot "cryptocurrencies" is designed exclusively for highly qualified or highly qualified investors with a proven level of capital and income. At the same time, the basic ban on using cryptocurrencies as a means of payment within the country remains in place. As a result, the domestic turnover remains very limited, and a significant part of the demand goes either to offshore channels or to a limited segment of the pilot.

The bitcoin (BTC) exchange rate updated its historical maximum and reached $124.2 thousand on August 14. It is specified that the cryptocurrency overcame the previous record at 1:45 Moscow time, reaching $123.5 thousand. Bitcoin recorded a new maximum at 3:30 a.m. After that, the price began a smooth decline.

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