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 are designing enticing tactics to entice international investors to invest in the country.
In similar vein, India is set to introduce Asia's first exchange-traded fund (ETF) in the near future.
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. An exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets. But it can be traded on a stock exchange the same way a regular stock can.
Torus Kling Blockchain IFSC is a 50:50 joint venture between Cosmea Financial Holdings, which is sponsored by Sam Ghosh, and Kling Trading India.
ETFs like the one proposed by Torus Kling
Blockchain and Kling Trading track returns from cryptocurrencies without directly being invested in the virtual coins.
India Likely to Get Futures Exchange-Traded Funds for Bitcoin, Ethereum in Coming Days: ReportIndia Likely to Get Futures Exchange-Traded Funds for Bitcoin, Ethereum in Coming Days.
Many people are coming up with innovative ways to entice international investors to invest in the country.
India is preparing to create Asia's first exchange-traded fund (ETF) soon in a similar vein.
The BSE's foreign 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 develop 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.
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This ETF is expected to be launched in a sandbox environment, which will help in live testing the products for emerging risks and correct them before they can affect a large number of investors
Indian investors would be able to invest in the ETF through the RBI's liberalised remittances system (LRS) route once it receives regulatory approvals, including from GIFT regulating authority International Financial Services Centre (IFSCA).
IFSCA has already received a request for authorisation from the exchange.
ETFs are believed to allow trading through traditional investment accounts, avoiding the hazards of cryptocurrency exchanges.
In the first two years after starting its services, Torus Kling Blockchain hopes to amass $1 billion in assets.