India looks to launch Asia’s first cryptocurrency ETF: reports

January 18, 2022

Asia’s first exchange-traded fund (ETF) is likely to be launched in India soon, according to NDTV.

Due to the novelty of the investment fund, it is likely to be launched in a sandbox environment where it will be tested for emerging risks before being offered to outside investors.

Crypto ETFs will allow investors to trade through regular investment accounts, bypassing the risks associated with crypto exchanges.

Torus Kling Blockchain IFSC, a joint venture between Mumbai-based Cosmea Financial Holdings and Hyderabad-based Kling Trading India, has inked a Memorandum of Understanding with the BSE’s international arm India INX to develop digital asset-based products in India, the NDTV reported.

“By the end of this fiscal, this service should be available in GIFT City, a central business centre in Gandhinagar, Gujarat,” the report said.

An exchange-traded fund (ETF), which is usually listed on an exchange, tracks an index, sector, commodity, or other assets.

Once the ETF secures regulatory approvals, including from GIFT regulatory authority International Financial Services Centre (IFSCA), Indian investors will be able to invest in it using the RBI’s liberalised remittances scheme (LRS) route.

“The exchange has already made a request for approval to IFSCA, the report said.

The news comes as Indian investors wait with bated breath for the government to announce crypto regulations in the coming parliamentary sessions, as Blockchain Review has reported.

India’s top securities regulator Securities Exchange Board of India (SEBI) has also decreed domestic mutual funds not to invest in cryptocurrencies until there was regulatory clarity on cryptocurrencies.

About the author

Tsering Namgyal is the chief content officer of the Blockchain Asset Review.

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