The Securities and Exchange Board of India (SEBI), the Indian securities regulator, has approved the Invesco CoinShares Global Blockchain ETF. The latter invests in large crypto companies, including Coinbase, Bitfarms and MicroStrategy.
India’s securities regulator, the Securities and Exchange Board of India (SEBI), has approved the first ETF that invests in cryptocurrency companies. Local media reports that the regulator has given the green light to Invesco’s CoinShares Global Blockchain ETF fund of funds.
The fund invests in several leading crypto companies including Coinbase, Bitfarms, SBI Holdings and MicroStrategy. The fund has performed well over the past year, with a one year return of 89.52%.
In the produced document, Invesco says it is optimistic about the future of the asset class, writing,
As blockchain technology is still in its infancy, the potential for change in the global economy is immense. Like the internet, blockchain presents an opportunity for investors who can seize this hidden potential.
CoinShares recently acquired the ETF arm of Elwood Technologies, a London-based financial technology firm that builds digital asset trading infrastructure for institutional investors. The two entities recently joined together to launch Invesco Elwood Global Blockchain UCITS ETF (BCHN).
The approval of this ETF is the first of its kind in India, which has yet to take a final stand on cryptocurrency regulation. Authorities across the country have repeatedly flip-flopped on their views on the matter, but it looks like regulation may soon arrive.
Where is India on crypto?
India’s securities regulator approving a crypto-linked ETF is a positive sign for Indian crypto investors. Young people across the country have been extremely excited about the crypto market, and investment continues despite this lack of a government position. The Indian market has seen a staggering 641% growth in the past 12 months or so.
The latest update on the state of regulation indicates that the government may classify cryptocurrencies as commodities. At the same time, the government is also working on a central bank digital currency (CBDC), the trials of which could be launched as early as next month.
In what appears to be another move suggesting positive regulation, authorities are said to be working to ban irresponsible cryptocurrency advertisements. The information was revealed by a memo summarizing a meeting between Prime Minister Narendra Modi and several stakeholders. Local cryptocurrency exchanges, including WazirX and CoinDCX, are expected to meet with government officials this week.
The industry itself is also thriving, with many new startups and investment capital flowing in. A report released by the National Association of Software and Services Companies (Nasscom) and WazirX estimates that the crypto-tech industry will be worth $ 241 million by 2030.
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