India might launch the Asia's first cryptocurrency exchange-traded fund (ETF) in 2022


Even with confusion over
the regulatory landscape and no clear messages from the government, India might
launch the first cryptocurrency exchange-traded fund (ETF) in Asia this year.
Cosmea
Financial Holdings, based in Mumbai, will launch the product in a joint venture
with Kling Trading India, located in Hyderabad. It is expected to launch
India's first crypto ETF by the end of this fiscal year.
Mr. Krishna
Mohan Meenavalli, CEO of Torus Kling Blockchain IFSC, remarked that “ETFs allow
trading through regular investment accounts, bypassing the hassle and security
concerns of cryptocurrency exchanges.”
A
Memorandum-of-Understanding (MOU) has already been signed with BSE's
international arm India INX regarding the launch of India's first Bitcoin and
Ethereum futures exchange-traded fund (ETF).
GIFT City's
International Financial Services Center will offer crypto-based products for
trading, which is the planned central business district in Gandhinagar,
Gujarat.
This will be
launched in a "sandbox" arrangement that is intended to provide an
environment where regulated firms can launch and test their products in a safe
and controlled environment.
There has
been no concrete decision on cryptocurrency regulation by the Indian parliament
for several years, which has delayed making concrete decisions. But,
crypto-related product institutional investment options are steadily expanding
in India.
India is
expected to introduce a crypto bill in February's budget session. Industry
leaders and investors hope to see a positive change.
So why
cryptocurrency ETF?:
An investor
can track cryptocurrency returns with a cryptocurrency ETF without having to
own the digital tokens themselves, which eliminates the hassles and
uncertainties associated with traditional cryptocurrency exchanges.
According to
global estimates, the annual derivatives trading volume for cryptocurrencies
stands around $3.2 trillion, whereas the spot volume is roughly $2.7 trillion.

Pavan A
CBW - External Analyst
INDIA