Torus Kling Blockchain IFSC, a 50:50 joint venture between Sam Ghosh promoted Cosmea Financial Holdings (CFH) and Kling Trading India, signed an MOU with India INX to launch India’s first Bitcoin and Ethereum futures ETF and Metaverse US-listed large-cap discount certificates.
This Bitcoin & Ethereum futures ETF will be the first crypto-backed futures ETF outside of US and the first Asian discount certificates tracking Metaverse large-cap stocks in US and Europe markets.
The ETF futures will be launched under a sandbox construct of IFSCA.
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.
Torus Kling Blockchain is targeting USD 1 billion 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 internatiofinancialance centers. We will be launching products in these new-age assets in compliance with the prevailing laws after receiving all required post regulatory approvals” said Mr. V. Balasubramaniam, Managing Director & CEO, India INX.
“New asset class is tip of the iceberg. Exchange trade products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges”, said Krishna Mohan Meenavalli, CEO, Torus Kling Blockchain IFSC.
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.
As per reports, global derivatives trading volume for the cryptocurrency market totaled USD 3.2 trillion, while total Spot volumes were half a billion lower at USD 2.7 trillion. In India, the ETF AUM has almost doubled from Rs 1.5 lakh crore to Rs 2.9 lakh crore during FY21. Also, Exchange Traded Products (ETPs) have acquired more than USD 1 trillion representing 15% of all fund assets globally.