Despite the ongoing uncertainty over the regulation of cryptocurrencies in India, local financial firms are supporting new projects aimed at launching exchange-traded funds (ETFs) with Bitcoin (BTC).

Torus Kling Blockchain, a joint venture between Cosmea Financial Holding, a financial firm backed by former Reliance Capital CEO Sam Ghosh, and Kling Trading India, is preparing to launch bitcoin and ether (ETH) futures ETFs in India, the Economic Times reported Thursday. . .

The company has signed an agreement with the major Indian Stock Exchange for International Exchange (INX) to launch a cryptocurrency ETF along with investment products that track major US-listed Metaverse-related companies.

According to the report, Torus Kling Blockchain plans to set up an ETF in Gujarat International Finance Tec-City (GIFT City) by the end of the current fiscal year in India or by the end of March 2022. The ETFs are subject to approval. The report refers to India’s International Financial Services Authority (IFSCA) and other regulators.

INX India CEO Venkataramani Balasubramaniam said the exchange and GIFT IFSC are considering “exploring launching digital asset-based products” and have already submitted an application to the IFSCA as part of a “regulatory protection environment.”

“This is part of our product innovation initiative to compare offerings with other international financial centres. The director indicated that we will launch products in these new assets in accordance with applicable law after obtaining all necessary regulatory approvals.

Krishna Mohan Minavali, CEO of Torus Kling Blockchain, said cryptocurrencies are a new asset class that represents the “tip of the iceberg” for upcoming innovation and adoption of financial technologies. “Stock trading products allow trading through regular investment accounts and bypass the security issues and concerns related to cryptocurrency exchange,” he said.

By the end of 2021, the Securities and Exchange Board of India will approve the Invesco Mutual Funds Invesco CoinShares Global Blockchain ETF Fund, which aims to invest in companies in the blockchain industry.

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The news comes as India’s INX is actively expanding into other markets and is said to have taken steps in early January to allow local investors to trade on the Moscow Stock Exchange in Russia. As previously reported, in late 2021 Russian financial giant Sber launched its own tracking ETF linked to the Coinbase and Galaxy Digital blockchains.

Source: CoinTelegraph