January 15, 2022
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Asia’s first crypto ETF to be launched in India
Torus Kling Blockchain IFSC, an equal joint venture between financial management firm Kling Trading India and Cosmea Financial Holdings, is all set to launch Asia’s first cryptocurrency ETF, which will potentially go live by March 2022 in GIFT city.
What is Crypto ETF ??
Crypto ETFs allow an investor to track cryptocurrency returns without having to invest in the digital tokens themselves, thereby circumventing the hassles and concerns associated with usual cryptocurrency exchanges. Future ETFs, on the other hand, are backed by futures contracts, which speculate on the volatile prices of cryptocurrencies in the market.
MOU:
Both the joint venture partners have already signed an MoU with BSE’s international arm India INX to launch the country’s first Bitcoin and Ethereum Futures ETF, along with being the first Asian Discount certificates tracking Metaverse Large Cap stocks in US and Europe markets, according to a report by The Economic Times.
The product will be traded on GIFT city’s IFSC (International Financial Services Centre).
As per V. Balasubramaniam, CEO of India International Exchange, a formal application to the IFSCA has already been made. “We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals”, he added.
Torus Kling Blockchain, which will also take care of its global distribution, is targeting around $1 billion assets under management (AUM) in the first two years from customers participating in these blockchain-backed products through ETFs and Discount certificates.
Other Crypto ETFs:
This follows the suit of the US regulations, which permitted Bitcoin Futures ETF last year, while the Canadian financial regulatory authorities okayed Bitcoin and Ethereum spot ETFs to be listed on the Toronto stock exchange.
Crypto Market size :
Global estimates suggest that the annual cryptocurrency derivatives trading volume stands at around $3.2 trillion, while the spot volume is approximately $2.7 trillion.