National Bank of Bahrain Unveils GCC’s First Bitcoin-Linked Investment with Full Capital Protection

• NBB launches the GCC’s first Bitcoin-linked investment product, blending capital protection with exposure to Bitcoin growth.
• Accredited investors can now access Bitcoin’s performance with 100% capital protection, addressing volatility concerns.
• NBB’s Bitcoin investment product meets demand for secure digital asset exposure, leveraging ARP Digital’s expertise in the market.

The National Bank of Bahrain (NBB) has launched the first Bitcoin-linked structured investment product in the Gulf Cooperation Council (GCC) region. Developed in collaboration with ARP Digital, the investment is designed to offer accredited investors a secure way to gain exposure to Bitcoin (BTC) while ensuring capital protection. This innovative product aims to balance potential long-term growth with risk mitigation, providing an option for investors looking to venture into digital assets.

Capital Protection Meets Bitcoin Exposure

This Bitcoin-linked structured investment product offers a unique opportunity for investors. While it allows for gains from Bitcoin’s upward performance, the product is capped at a predefined threshold to limit volatility risks. 

Additionally, 100% capital protection is guaranteed on the downside, ensuring that investors’ principal investment is fully preserved in case of unfavorable market conditions. This combination of growth potential and protection makes it an appealing option for risk-averse investors seeking to diversify their portfolios.

NBB’s Group Chief Executive – Markets & Client Solutions, Hisham AlKurdi, emphasized the bank’s commitment to offering secure and innovative solutions. He stated that the structured investment combines digital asset exposure with the assurance of capital preservation, offering a novel avenue for wealth management clients.

New Product for a Growing Market

This product introduction is aligned with NBB’s strategy to expand its offerings in the wealth management sector. By introducing a product specifically designed to meet the needs of accredited investors, the bank is addressing a growing demand for exposure to Bitcoin while minimizing potential losses. The structured investment offers a calculated way to engage with the digital asset market.

Abdulla Kanoo, Co-Founder and Co-Chief Executive Officer of ARP Digital, noted that their collaboration with NBB could reshape the market by offering a secure and calculated approach to Bitcoin investments. The product’s development leverages ARP Digital’s expertise in digital assets alongside NBB’s extensive financial network.

Bahrain’s Financial Innovation

The Bitcoin-linked structured investment also highlights Bahrain’s growing financial sector. According to Dalal Buhejji, Executive Director of Business Development for Financial Services at the Bahrain Economic Development Board, this product reflects the strength of Bahrain’s financial services ecosystem, which improves innovation and diversity.