Torus Kling Blockchain to launch India’s first Bitcoin ETFs: Last year, cryptocurrency and its related businesses went on a roller-coaster ride, and many people are hoping for continued robust, albeit erratic, growth this year. New investors tend to be the most ardent supporters of the digital assets business, and companies that provide these services are going all out to court them. Many of them are devising attractive strategies to attract foreign investors to the country. Moving in that direction, India is expected to launch Asia’s first exchange-traded fund (ETF) soon.
The BSE’s international arm India INX has signed a Memorandum of Understanding with Torus Kling Blockchain IFSC, a joint venture between Mumbai-based Cosmea Financial Holdings and Hyderabad-based Kling Trading India, to create digital asset-based products in India. This service should be available in GIFT City, a central business district in Gandhinagar, Gujarat, by the conclusion of the fiscal year.
This Bitcoin and Ethereum futures ETF will be the first crypto-backed futures ETF outside of the United States, as well as the first Asian discount certificates that track Metaverse large-cap equities in the United States and Europe.
The ETF futures will be released in an IFSCA sandbox environment.
Subject to IFSCA and other regulatory approvals, Torus Kling Blockchain IFSC expects to launch the ETF in Gift City by the end of the current fiscal year.
An exchange-traded fund (ETF) is an investment that tracks the performance of an index, sector, commodity, or another asset. It can, however, be exchanged on a stock exchange just like a regular stock. Torus Kling Blockchain IFSC is a 50:50 joint venture between Sam Ghosh-backed Cosmea Financial Holdings and Kling Trading India. ETFs, such as the one presented by Torus Kling Blockchain and Kling Trading, track the performance of cryptocurrencies without investing directly in them.
According to sources, the cryptocurrency market’s worldwide futures trading volume was USD 3.2 trillion, while total Spot transactions were half a billion lower at USD 2.7 trillion. During FY21, the ETF AUM in India nearly doubled, from Rs 1.5 lakh crore to Rs 2.9 lakh crore. Furthermore, Exchange Traded Products (ETPs) have amassed more than USD 1 trillion, accounting for 15% of all worldwide fund assets.