India to soon get Exchange-Traded Funds for Bitcoin, Ethereum:

Months after the US approved Bitcoin Exchange Traded Funds (ETF), India may follow suit and likely get ETFs for Bitcoin and Ethereum in the coming days, reports claim.

According to a report by The Financial Express, Torus Kling Blockchain IFSC, a joint venture between Cosmea Financial Holdings and Kling Trading India, has signed a Memorandum of Understanding (MoU) with India INX to launch the country’s first crypto ETF. As per the MoU, India INX will be the trading platform and Cosmea Financial Holdings will distribute, while Kling Trading will be the technology partner.

For starters, India INX is India’s first international stock exchange and is a subsidiary of the Bombay Stock Exchange. Crypto ETFs are an investment vehicle that allows investors to diversify their investments without actually owing an asset. An ETF tracks the price fluctuations of an underlying asset such as Bitcoin or Ethereum, giving people an alternative to profit from the price trend without owning a single unit of the cryptocurrency asset.

For example, the owner of a Bitcoin ETF will not invest directly in the Bitcoin itself, so they will not have to worry about the complex storage and security procedures required of cryptocurrency investors.

“India INX at GIFT IFSC is looking at exploring the launch of digital asset-based products and has already submitted an application to the IFSCA under a regulatory sandbox. This is part of our product innovation initiative to benchmark offerings with other international funding centers,” said Mr. V.

Meanwhile, launching the first Bitcoin ETF in the US was not easy. The reason is that Bitcoin, the world’s largest cryptocurrency, remains unregulated and subject to extreme volatility. In addition, the US Securities and Exchange Commission (SEC) has been reluctant to allow ETFs focused on the new and largely unproven cryptocurrency market to make their way into the community.

However, after 8 long years of struggle, the first order to trade Bitcoin ETF, was placed on the New York Stock Exchange (NYSE), in the US, with the first Bitcoin ETF trading in the US on October 19, 2021. Now, India may be stepping up its game of By allowing the launch of not only a Bitcoin ETF but also an Ethereum futures ETF.

“Crypto assets are going to be big in the future. Gift City is looking into being a pioneer in dollar assets. The application has been submitted jointly with INX and we expect approval by March of this year. This is a new asset class and will create an opportunity for local and international investors to invest in digital assets,” said Krishna Mohan Minavali. “We want to bridge the gap between the digital asset market and the regulated market,” said CEO of Torus Kling Blockchain IFSC.

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