Asias First Crypto ETF Set to Launch in India
Cryptocurrency and its allied industries saw a rollercoaster ride last year and many expect them to continue to show strong, albeit volatile, growth this year. . New investors seem to be the strongest advocates of the digital asset industry, and the companies providing these services are doing their best to appeal to this investor segment. Many of them are devising lucrative ways to attract domestic investors. In that direction, Asia’s first exchange-traded fund (ETF) is likely to be launched in India soon.
Torus Kling Blockchain IFSC, a joint venture between Mumbai-based Cosmea Financial Holdings and Hyderabad-based Kling Trading India, has signed a Memorandum of Understanding with BSE’s international arm India INX to develop products based on on digital assets in India. At the end of this financial year, the service will be available in GIFT City, a mall in Gandhinagar, Gujarat.
Key things to know
An exchange-traded fund (ETF) is a security that tracks an index, sector, commodity, or other asset. But it can be traded on a stock exchange the same way a regular stock can.
– Torus Kling Blockchain IFSC is a 50:50 joint venture between Cosmea Financial Holdings, sponsored by Sam Ghosh and Kling Trading India.
– ETFs like the fund recommended by Torus Kling Blockchain and tracking Kling Trading profit from crypto without directly investing in cryptocurrencies.
– This ETF is expected to be launched in a sandbox environment, which will help with live testing of products to find emerging risks and fix them before they can affect some large number of investors.
– Once the ETF secures regulatory approvals, including from the GIFT regulator International Financial Services Center (IFSCA), Indian investors will be able to invest in the fund by using the RBI’s liberalized remittances (LRS) route.
– The exchange has submitted an approval request to IFSCA.
– ETFs are supposed to allow trading through conventional investment accounts, bypassing the risks associated with cryptocurrency exchanges.
Torus Kling Blockchain is aiming to hit $1 billion in assets within the first two years of the service’s launch.
