India’s first Bitcoin and Ethereum Futures ETF could come up in Gift City if the International Financial Services Centre (IFSCA) gives its blessings to India INX.
The international arm of BSE along with Kling Block Chain IFSC has sought approvals to launch digital asset-based products at the GIFT IFSC. The exchange has signed a memorandum of understanding with Kling Block Chain IFSC to explore and launch the products.
V Balasubramaniam, MD & CEO, India INX, said, “India INX at GIFT IFSC is looking at exploring launch of digital asset-based products and has already made an application to IFSCA under Regulatory Sandbox. This is a part of our product innovation initiative for benchmark our offerings with other international finance centres. We will be launching products in these new-age assets in complete compliance with the prevailing laws after receiving all required regulatory approvals.”
Torus Kling Blockchain IFSC, a 50:50 joint venture between Sam Ghosh-promoted Cosmea Financial Holdings and Kling Trading India, is looking at India’s first Bitcoin and Ethereum Futures ETF and Metaverse US listed large-cap discount certificates. This will be the first crypto-backed futures ETF outside the US. Torus Kling Blockchain will provide India INX round-the-clock deep liquidity with smart order routing. The product will be distributed through Torus’s global distribution team and partners.
Domiciled Indians will be able to invest in the Bitcoin Futures ETF under the liberalised remittance scheme as ETFs are treated as stocks. Given the regulatory uncertainty around cryptocurrencies, investors have found it tough to invest in these digital assets. If IFSCA gives its approval, domiciled Indians will be able to invest in a crypto ETF through brokers registered with INX.
Torus Kling Blockchain is targeting $1 billion assets under management in the first two years from customers participating in blockchain-backed products through ETFs and discount certificates.
Krishna Mohan Meenavalli, CEO, Torus Kling Blockchain IFSC, said: “Crypto assets will be big in future. Gift City is looking at being a leader in dollar assets. Application has been made jointly with INX and we are expecting an approval by March this year. This is a new asset class and will create an opportunity for domestic and international investors to invest in digital assets. We want to bridge the gap between the digital assets market and regulated markets.”