Cryptocurrency ETF to be launched soon in GIFT City
There is good news for investors
exploring opportunities in cryptocurrencies as Asia’s first exchange-traded fund
(ETF) will be launched by the end of this fiscal year. Investors will have one
more option to enter the crypto world.
As per the media reports, Asia’s
first ETF will come up at GIFT City, a central business centre in Gandhinagar,
Gujarat.
A memorandum of understanding was signed
between the BSE's international arm India INX and Torus Kling Blockchain
IFSC, a joint venture between Hyderabad-based Kling Trading India and Mumbai-based
Cosmea Financial Holdings. Torus Kling Blockchain IFSC is a 50:50 joint venture
between Kling Trading India and Cosmea Financial Holdings.
ETF or exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets. Like a regular stock, in a similar way, it can be traded on a stock exchange. It means that an investor will not directly invest in a virtual coin but in an index. As per the media report, the exchange has already made a request for approval from International Financial Services Centre (IFSCA). Once the ETF secures necessary regulatory approvals, including from GIFT regulatory authority, IFSCA, investors in the country can invest in it using the RBI's liberalized remittances scheme (LRS) route.
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