India's first Bitcoin and Ethereum futures ETF will be launched by Torus Kling Blockchain IFSC. It plans $1 billion in assets under management by two years, and will also track large-cap metaverse stocks.
Torus Kling Blockchain IFSC, a joint venture between Cosmea Financial Holdings and Kling Trading India, has signed a Memorandum of Understanding (MoU) with INX India to launch the country's first exchange-traded fund (ETF) for Bitcoin and Ethereum futures—the first outside of the U.S., reports Live Mint.
Under the signed MoU, India INX will be the trading platform, while Cosmea Financial Holdings will handle the distribution and Kling Trading will be the technology partner.
Cosmea, promoted by former Reliance Capital CEO Sam Ghosh, has applied to the Reserve Bank of India for a small finance bank license and is awaiting regulatory approval. India INX, the international division of BSE, started trading in 2017 and is the first international exchange in India to be based on GIFT IFSC. Torus Kling Blockchain IFSC will be India's INX liquidity provider, providing 24/7 liquidity with smart order routing.
ETF futures are expected to launch by the end of this fiscal year as part of the International Financial Services Centers Authority sandbox. Product launches are subject to IFSCA and other regulatory approvals. “Exchange trade products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges,” said Krishna Mohan Meenavalli, CEO, Torus Kling Blockchain IFSC.
Torus Kling Blockchain is targeting $1 billion in assets under management over the first two years from clients participating in blockchain-backed products through ETFs and discount certificates. These goals are based on obtaining regulatory approvals to launch these products, the company says.
“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,” said V. Balasubramaniam, managing director and CEO, India INX.
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