Torus Kling Blockchain IFSC, a joint venture between financial management firm Kling Trading India and Cosmea Financial Holdings, is ready to launch Asia’s first cryptocurrency ETF, which will probably be in the crypto market of India by March 2022 in GIFT (Gujarat International Finance Tech) city. 

Both of these firms have linked a Memorandum of Understanding with the BSE’s international arm India INX to design digital asset-based products in India. The testing grounds for live trials of new products or services in the fintech space are associated with the regulatory sandboxes. 

Far-Fetched Plan of Torus Kling Blockchain

The firm is planning to target around $1 billion assets under management (AUM) in the first two years from customers participating in these blockchain-backed products through exchange-traded funds (ETFs) and Discount certificates. 

Why Are Crypto ETFs Good?

Crypto ETFs enable an investor to track returns on cryptocurrencies without being invested in the digital token themselves, thereby circumventing the hassles and concerns attached with usual crypto exchanges. 

Points To Be Noted: India’s First Crypto ETF

-An exchange-traded fund (ETF) is a kind of safety that monitors an index, sector, commodity, or different assets. Though, it can be traded on a stock market the same way a stock trades. 

-Torus Kling Blockchain IFSC is an equal partnership between Cosmea Financial Holdings, which is subsidized by Sam Ghosh, and Kling Trading India. 

-ETFs like the one to be launched by Torus Kling Blockchain and Kling Trading track returns from cryptocurrencies without directly being invested in the digital currency. 

-Kling Blockchain’s ETF is to be launched in a sandbox setting, which can help in testing the merchandise for rising dangers and resolve them as soon as possible. 

-A request has been made to IFSCA by the exchange. 

Conclusion

Once the ETF obtains all regulatory approvals, Indian investments in the ETF will be streamlined through RBI’s liberalized remittance scheme. They will also allow trading through ordinary investment accounts and thus diminish the security and hassle concerns of crypto exchanges in India.