IFSC recently partnered with India INX to launch India’s first bitcoin and ethereum ETF through the Torus Kling Blockchain MoU. This is the first Bitcoin futures ETF to debut outside the United States.
As reported by The Economic Times, the ETF will be launched as part of the International Financial Services Centres Authority (IFSCA) sandbox structure.
Torus will deliver liquidity to India INX through intelligent order routing. The ETF is to be distributed through Torus’ global distribution team.
Balasubramaniam, India INX’s Managing Director and CEO, stated:
This is part of our product innovation initiative to compare the offer with other international financial centres. We will introduce products into these new assets in accordance with applicable law once we have received all required non-regulatory approvals.”
Us-listed large-cap metaverse discount certificates will also accompany the launch of ETFs. A discount certificate is a short-term debt obligation issued at a discount to the market rate, typically by a high credit rating organisation.
Torus plans to launch an ETF in GIft City by the end of the fiscal year.
India’s approach: Ban or no ban?
This announcement may seem surprising given India’s history of hostility to cryptocurrencies. However, the government has lately began to rethink its entire ban on technology, with the possibility of choosing for regulation rather than outright prohibition.
Surprisingly, the launch of such an ETF would put India in the same position as the United States in terms of approving funds. Although a very popular futures ETF was launched in October, the SEC has not yet approved the spot ETF due to investor protection concerns. As it happens, since its inception, this ETF has performed worse than almost every other ETF in history.
Reports from The Economic Times suggest that the global trading volume of derivatives in the cryptocurrency markets is $3.2. Meanwhile, spot markets account for $2.7 trillion in volume.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.