Through a Memorandum of Understanding, Torus King Blockchain IFSC recently partnered with India INX to launch the first Bitcoin and Ethereum ETF product in India. It is the first Bitcoin futures ETF to be traded outside of the United States.
An Indian crypto ETF
As The Economic Times reported, the ETF will launch under the sandbox structure of the International Financial Services Centers Authority (IFSCA).
Torus will be responsible for providing liquidity to India INX using smart order routing. The ETF is expected to be distributed by Torus’ global distribution team.
“This is part of our product innovation initiative to benchmark offerings with other international financial centers,” said MV Balasubramaniam, Managing Director and CEO of India INX. “We will launch products in these new era assets in accordance with applicable laws after receiving all required post-regulatory approvals.”
The launch of the ETF will also be accompanied by US-listed large-cap discount certificates on Metaverse. A discount certificate is a short-term debt security issued at a discount to the market rate, usually by organizations with a high credit rating.
Torus plans to launch the ETF in GIFt City by the end of the fiscal year, in accordance with IFSCA regulations.
India’s approach: ban or no ban?
The announcement may come as a surprise given India’s history of hostility towards cryptocurrency. However, the country has recently begun to reconsider its outright ban on the technology, perhaps opting for regulation instead.
The launch of such an ETF would, surprisingly, put India in the same position as the United States when it comes to fund approvals. Despite having launched a very popular Bitcoin Futures ETF in October, the SEC has yet to approve a spot ETF out of concern for investor protection. Since its inception, this ETF has proven to be worse than almost any ETF in history when measured two months after its launch.
Reports received by The Economic Times suggest that the global derivatives trading volume stands at $3.2 in the crypto markets. Meanwhile, spot crypto markets account for $2.7 trillion in trading volume.
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