Through a memo of understanding, Torus King Blockchain IFSC recently partnered with India INX to launch India’s first Bitcoin and Ethereum ETF product. This is the first Bitcoin futures ETF to premier outside of the United States.
An Indian Crypto ETF
As reported by The Economic Times, the ETF will launch under the International Financial Services Centres Authority (IFSCA)’s sandbox structure.
Torus will be responsible for providing liquidity to India INX using smart order routing. The ETF is set to be distributed through the Torus global distribution team.
“This is a part of our product innovation initiative to benchmark offerings with other international financial centres,” said Mr. V. Balasubramaniam, Managing Director & CEO at India INX. “We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals”.
The ETF launch will also be accompanied by Metaverse U.S.-listed large-capitalization discount certificates. A discount certificate is a short-term debt obligation 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 compliance with IFSCA regulations.
India’s Approach: Ban or No Ban?
The announcement may appear surprising given India’s history of hostility towards cryptocurrency. However, the country has recently begun reconsidering its outright ban on the technology, possibly opting for regulation instead.
Launching such an ETF would, surprisingly, put India in the same position as the United States on fund approval. While having launched a highly popular Bitcoin Futures ETF in October, the SEC is yet to approve a spot ETF out of investor protection concerns. Since inception, that ETF happens to have performed worse than almost any ETF in history when measured two months after launch.
Reports received by The Economic Times suggest that global derivatives trading volume amounts to $3.2 in the crypto markets. Meanwhile, spot crypto markets account for $2.7 trillion in trading volume.