India’s securities regulator, the Securities and Exchange Board of India (SEBI), has authorized the Invesco CoinShares Global Blockchain ETF. The latter makes investments in prominent cryptocurrency startups such as Coinbase, Bitfarms, and MicroStrategy.
The Securities and Exchange Board of India (SEBI), India’s securities regulator, has authorised the country’s first exchange-traded fund (ETF) dedicated to cryptocurrency firms. According to local media sites, the regulator has approved Invesco’s CoinShares Global Blockchain ETF Fund of Funds.
The fund invests in a number of well-known cryptocurrency startups, including Coinbase, Bitfarms, SBI Holdings, and MicroStrategy. The fund has done well over the last year, returning 89.52 percent.
Invesco expresses optimism about the asset class’s future in the product paper, noting, Due to the fact that blockchain technology is still in its infancy, the potential for transforming the global economy is enormous. As with the internet, blockchain provides an opportunity for investors who can identify and capitalize on this untapped potential.
CoinShares recently purchased Elwood Technologies’ ETF division, a London-based fintech startup focused on strengthening institutional investors’ digital asset trading infrastructure. The two companies collaborated recently to establish the Invesco Elwood Global Blockchain UCITS ETF (BCHN).
This is the first ETF of its sort to be approved in India, which has yet to take a definite position on cryptocurrency legislation. Authorities in the country have frequently flipped their positions on the issue, but it seems as if regulation is on the way.
What is India’s position on cryptocurrency?
The approval of a crypto-related ETF by India’s securities regulator is a favorable sign for Indian crypto investors. The country’s young have been highly passionate about the cryptocurrency industry, and investments have remained robust despite the government’s lack of a stance. India’s market has expanded by an astounding 641 percent during the last 12 months.
According to the most recent regulatory status update, the government may categorize cryptocurrencies as commodities. Simultaneously, the government is developing a central bank digital currency (CBDC), with testing set to begin as soon as next month.
Authorities are allegedly focusing on outlawing reckless bitcoin advertisements, in what looks to be another sign of beneficial regulation. A letter summarizing a meeting between Prime Minister Narendra Modi and many stakeholders disclosed the facts. This week, local cryptocurrency exchanges, including WazirX and CoinDCX, will meet with government authorities.
The sector as a whole is also thriving, with several new businesses and an influx of investment funds. According to a survey released by the National Association of Software and Services Companies (Nasscom) and WazirX, the crypto-technology business will be worth $241 million by 2030.
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