Mumbai: The first Cryptocurrency exchange trade fund in Asia (ETF) can be launched in the Indian prize city this year.
Torus Kling Blockchain IFSC, a joint venture between Cosmea’s financial ownership based on Mumbai and Hyderabad-based Indian-based trading, has signed the MoU (memorandum understanding) with BSE’s International Arm India Inx to launch digital asset-based products, which will be traded at IFSC City Gifts (Service Center International finance).
The development came after the US Securities Regulator in October 2021 allowed the launch of ETF Crypto Futures, the first in the US.
ETFs like this step back from Cryptocurrency without investing directly on digital tokens.
Torus Kling Crypto Futures ETF will be launched in a sandbox environment, which is under the IFSCA gift supervisor authority.
Such Sandbox allows the entity set to launch and test products directly under strict control so that any risks or errors that arise can be quickly corrected before affecting many investors.
After Torus Kling ETF obtains a nod of regulations, Indians will be able to invest in ETF using the Remittance (LRS) scheme that is RBI liberalization.
Global investors, who have similar options in the US and Switzerland, will have other alternatives to invest through regular processes.
According to India Inx MD & CEO V Ballasubramaniam, exchanges are looking at launching digital asset-based products and have made applications for IFSCA under the sandbox of regulation.
“This is part of our product innovation initiative to benchmark offerings with other international financial centers,” he said.
Inx India plans to launch more of these products.
According to estimates, the global annual derivative trading volume in the Cryptocurrency market is around $ 3.2 trillion, while the total spot volume is around $ 2.7 trillion.
According to CEO of Torus Kling Blockchain Krishna Mohan Meenavalli, this new type of asset class is just the tip of the iceberg.
“ETF allows trade through regular investment accounts, through the issue of complexity and security from the exchange of cryptocurrency,” he said.