Key Points:
- India’s first Bitcoin and Ethereum futures ETF is set to launch by Torus Kling Blockchain IFSC.
- The ETF will aim to accumulate $1 billion in assets within two years and also include metaverse stocks.
- A Memorandum of Understanding (MoU) was signed between Torus Kling Blockchain IFSC and India INX for the ETF’s launch.
- The ETF is expected to roll out by the end of the fiscal year, pending regulatory approval.
India to Debut its First Cryptocurrency Futures ETF
India is on the verge of launching its first Bitcoin and Ethereum futures exchange-traded fund (ETF), marking a significant milestone in the country’s financial and cryptocurrency landscape. Torus Kling Blockchain IFSC, a joint venture between Cosmea Financial Holdings and Kling Trading India, has signed an agreement with India INX to introduce this ETF, making it the first of its kind outside the United States.
The ETF will not only track Bitcoin and Ethereum futures but also large-cap stocks from the metaverse sector. This ambitious initiative aims to bring cryptocurrency investment to a broader audience in India by offering a regulated and secure platform for trading these assets.
A Major Step for India’s Financial Sector
The Memorandum of Understanding (MoU) signed between Torus Kling Blockchain IFSC and India INX, a division of the Bombay Stock Exchange (BSE), outlines the roles for the involved parties. India INX will serve as the trading platform for the ETF, while Cosmea Financial Holdings will oversee distribution. Kling Trading India will act as the technology partner, ensuring the smooth functioning of the ETF.
Cosmea, led by former Reliance Capital CEO Sam Ghosh, is also seeking a small finance bank license from the Reserve Bank of India, adding another layer of credibility to the venture. India INX, established in 2017, operates out of the GIFT IFSC (Gujarat International Finance Tec-City International Financial Services Centre) and is recognized as India’s first international exchange. Torus Kling Blockchain IFSC will provide round-the-clock liquidity, leveraging smart order routing to enhance trading efficiency.
The ETF is expected to launch by the end of the fiscal year, subject to regulatory approval from the International Financial Services Centres Authority (IFSCA) and other governing bodies. According to Krishna Mohan Meenavalli, CEO of Torus Kling Blockchain IFSC, the ETF will allow investors to trade using standard investment accounts, avoiding the complexities and security risks typically associated with cryptocurrency exchanges.
Targeting $1 Billion in Assets
Torus Kling Blockchain IFSC is aiming high, targeting $1 billion in assets under management within the first two years of the ETF’s launch. The fund hopes to attract a diverse range of investors who are interested in blockchain-backed financial products, offering ETFs and discounted certificates to streamline the investment process.
The launch is expected to proceed within the IFSCA sandbox, a regulatory environment that allows financial products to be tested before full approval is granted. India INX, which has already applied for clearance under the sandbox, is optimistic about the potential for this ETF and other digital asset products in India.
V. Balasubramaniam, Managing Director and CEO of India INX, expressed confidence in the initiative, stating that India INX is looking forward to exploring more digital asset-based financial products, further positioning India as a key player in the global cryptocurrency market.
As India steps closer to introducing this groundbreaking ETF, the move is expected to offer investors a safer and more regulated way to invest in digital currencies, signaling the country’s growing acceptance of blockchain technologies.
