Despite the ongoing uncertainty about cryptocurrency regulation in India, local financial firms are backing new ventures aiming to launch Bitcoin (BTC) exchange-traded funds (ETF).<\/p>\n
Torus Kling Blockchain, a joint venture between Cosmea Financial Holding, a financial firm backed by former Reliance Capital CEO Sam Ghosh, and Kling Trading India, is preparing to launch Bitcoin and Ether (ETH) futures ETFs in India, The Economic Times reported Thursday.<\/p>\n
The company has signed a memorandum of understanding with India\u2019s major stock exchange, the India International Exchange (INX), to launch crypto ETFs alongside investment products tracking major metaverse-related companies listed in the United States.<\/p>\n
According to the report, Torus Kling Blockchain is planning to set up the ETFs in the Gujarat International Finance Tec-City (GIFT City) by the end of the current fiscal year in India, or by the end of March 2022. The ETFs are subject to approval by India\u2019s International Financial Services Centres Authority (IFSCA) and other regulators, the report notes.<\/p>\n
\u200b\u200bIndia INX CEO Venkataramani Balasubramaniam said that the stock exchange and GIFT IFSC are looking at \u201cexploring the launch of digital asset-based products\u201d and has already applied with the IFSCA under \u201cregulatory sandbox.\u201d<\/p>\n
\u201cThis is a part of our product innovation initiative to benchmark offerings with other international financial centers. We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals,\u201d the executive noted.<\/p>\n
Cryptocurrencies are a new asset class that is a \u201ctip of the iceberg\u201d of the upcoming fintech innovation and adoption, Torus Kling Blockchain CEO Krishna Mohan Meenavalli said. \u201cExchange trade products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges,\u201d he said.<\/p>\n
In late 2021, India’s Securities and Exchange Board reportedly approved Invesco Mutual Fund\u2019s Invesco CoinShares Global Blockchain ETF Fund of Fund, aimed at investing in blockchain industry companies.<\/p>\n