Markets

India to soon have crypto-based Futures ETF

BL Ahmedabad Bureau | | Updated on: Jan 13, 2022
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IndiaINX-Torus Kling Blockchain partner to launch India’s first crypto-based Futures ETF

Jan 13: In a first for International Financial Services Center (IFSC) in India, cryptocurrency Bitcoin and Ethereum Futures ETF and Metaverse US-listed Large-cap Discount Certificates may soon be launched at GIFT-IFSC, post the regulatory approvals.

Torus Kling Blockchain IFSC, a 50:50 joint venture between Sam Ghosh-promoted Cosmea Financial Holdings (CFH) and Kling Trading India, have signed a memorandum of understanding (MoU) with India INX to launch India’s first crypto-backed Futures exchange-traded fund (ETF).

The ETF Futures will be launched under a Sandbox construct of regulator IFSC Authority.

A joint application has been filed with IFSCA under Regulatory Sandbox regarding launching these new-age Digital asset-based products.

To be launched in GIFT-IFSC, the Bitcoin & Ethereum Futures ETF will be the first crypto-backed futures ETF outside the US. Also, this is the first Asian Discount certificate tracking Metaverse Large Cap stocks in US and Europe markets.

Torus Kling Blockchain will be the liquidity provider to India INX by providing round-the-clock deep liquidity with smart order routing.

The product will be distributed through Torus global distribution team and partners, a statement said.

Torus Kling Blockchain targets USD 1 billion of Asset Under Management (AUM) in the first two years from customers participating in blockchain-backed products through ETFs and Discount certificates.

"India INX at GIFT IFSC is looking at exploring the launch of Digital Asset-based products and has already made an application to IFSCA under Regulatory Sandbox. This is a part of our product innovation initiative to benchmark offerings with other international financial centres. We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals," said V. Balasubramaniam, Managing Director & CEO, India INX.

Commenting on the development, Krishna Mohan Meenavalli, CEO, Torus Kling Blockchain IFSC, said, "New Asset class is the tip of the iceberg. Exchange-traded products allow trading through regular investment accounts, bypassing the hassle and security concerns of CryptoCurrency Exchanges."

Torus Kling Blockchain IFSC plans to launch the ETF in Gift City by the end of this fiscal, subject to IFSCA and other regulatory approvals.

Published on January 13, 2022

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