Cryptocurrency and its related industries have been on a rollercoaster ride last year and many are hoping that they will continue to show strong, albeit volatile, growth this year as well. New investors appear to be the strongest backers of the digital asset industry and companies offering these services are doing everything they can to win over this investor segment. Many of them come up with lucrative ways to attract investors in the country. In that direction, Asia’s first exchange-traded fund (ETF) is likely to launch in India soon.
Torus Kling Blockchain IFSC, a joint venture between Mumbai-based Cosmea Financial Holdings and Hyderabad-based Kling Trading India, has signed a Memorandum of Understanding with BSE’s international arm, India INX, to sell digital asset-based products in India. to develop. By the end of this fiscal year, this service should be available in GIFT City, a central business center in Gandhinagar, Gujarat.
Important things to know
– An exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity or other asset. But it can be traded on an exchange in the same way as a common stock.
– Torus Kling Blockchain IFSC is a 50:50 joint venture between Cosmea Financial Holdings, sponsored by Sam Ghosh, and Kling Trading India.
– ETFs like the ones proposed by Torus Kling Blockchain and Kling Trading track returns of cryptocurrencies without investing directly in the virtual coins.
– This ETF is expected to be launched in a sandbox environment, which will help live-test the products for emerging risks and correct them before they can affect a large number of investors.
– Once the ETF has been approved by the regulatory authorities, including the regulatory agency GIFT International Financial Services Center (IFSCA), Indian investors can invest in it through the RBI’s Liberalized Remittance Scheme (LRS).
– The exchange has already submitted a request for approval to IFSCA.
– ETFs are said to allow trading through regular investment accounts, bypassing the risks associated with cryptocurrency exchanges.
– Torus Kling Blockchain aims for $1 billion in assets in the first two years after the services launch.