Bitcoin and Ethereum futures ETFs may be in the cards for India
India may soon get its first Bitcoin and Ethereum futures exchange traded funds (ETFs) pending approval by a financial regulator.
Fast facts
- India INX, the international arm of BSE (formerly Bombay Stock Exchange) and Torus Kling Block Chain IFSC have jointly sought regulatory approval for a Bitcoin and an Ethereum Futures ETF, according to a press release.
- Torus Kling Block Chain, a joint venture between Cosmea Holdings and Kling Trading India, is also launching discount certificates of U.S.-listed large cap companies, including Meta and Nvidia, focusing on the metaverse.
- India INX will provide the trading platform, Torus Kling Block Chain IFSC will provide liquidity and Cosmea Holdings will be responsible for distributing Bitcoin and Ethereum microfutures.
- Torus Kling Block Chain, which expects regulatory approval from the International Financial Services Centres Authority by March, is targeting US$1 billion in assets under management in the first two years through the ETFs and discount certificates.
- Once regulatory approval is received, Indians will be able to invest in the crypto futures ETFs through brokers registered with India INX.
- Despite regulatory uncertainty, the number of crypto investors in India more than doubled from 7 million in 2020 to 15 million last year, while the digital assets market size grew 39% from 2020 to US$74.2 million in FY2021.
