It was recently announced that Asia's first exchange-traded fund, ETF, will be launching soon. The ETF is set to be launched by an equal joint venture of Kling Trading India and Cosmea Financial Holdings, called Torus Kling Blockchain IFSC.
This will be the first ETF of Asia and according to the reports, it is ready to be launched by March 2022 in GIFT - Gujarat International Finance Tech - city. According to the reports, the venture has already signed the Memorandum of understanding with BSE International.
As a result, the BTC and ETH Futures ETF will be launched in addition to the Asian Discount certificates which will be tracking the performance of large-cap Metaverse companies in the US and European markets.
The product will be available for trading on the IFSC of the GIFT city. According to official reports, the ETF will be launched in a sandbox arrangement which is possible thanks to the International Financial Services Centers Authority, IFSCA - a regulatory agency of financial centers in Special Economic Zones.
Sandboxes are very commonly used in the industry as a way of testing different types of live trials of new products. It is a very famous way in the fintech industry to perform trials of new services. This is a great way for industry participants to ensure having a balance between innovation in the market and the protection of individuals.
Waiting for Regulatory Approvals
According to the CEO of the India International Exchange, the application to the IFSCA has already been made and further steps will be taken after receiving all the regulatory approvals. According to the Torus Kling Blockchain representatives, they are targeting as much as $1 billion assets under management in the first two years.The announcement about Asia's first ETF comes soon after the steps taken by US and Canadian regulators, which allowed trading of Bitcoin and Ethereum ETFs on the stock exchanges.
BTC ETFs have long been a subject of discussions around the world, many claiming that it would be another step for the crypto industry towards reaching the long-awaited mainstream exposure and adoption.
Crypto ETFs can be a great addition to an individual’s portfolio and they can be used to track the performance of different cryptocurrencies without having to invest in digital tokens themselves. There also are future ETFs available on the market which are backed by futures contracts and work by looking at the volatile prices of cryptocurrencies in the market.
The popularity of the cryptocurrency trading market has increased dramatically over the past few years. According to some estimates, the volume of crypto derivatives trading is around $3.2 trillion, and the volume of spot trading is about $2,7 trillion.
Crypto Trading in India
Cryptocurrency trading has been growing around the world, including in India. People in all parts of the country are very interested in the cryptocurrency trading market. Even those living in the rural areas of the country are showing a massive interest in the cryptocurrency trading market.
There are many reasons behind the huge popularity of the crypto industry. One of the main reasons is that it has become very easy to start trading cryptocurrencies. There are hundreds of crypto exchanges available in the market, which offer retail traders the opportunity to get started in the crypto market in a matter of a few minutes.
Traders don’t even have to know how to trade cryptocurrencies on their own, a majority of the crypto exchanges offer traders algorithmic trading opportunities. By using automated trading systems, traders are able to analyze the price movements in the market in a matter of a few minutes.
Not only that, but cryptocurrency trading robots are also able to automate the whole process of crypto trading, which makes it easier for market participants to make profits.
However, while the demand for high-quality cryptocurrency trading services has been increasing dramatically in India, the country is still far from establishing a regulatory system that would benefit the safety of traders while also ensuring further development of the market.
The Parliament of India was supposed to hold a hearing of the Crypto Bill during the winter session of the Parliament. However, it was noted by the local media that there were still some changes that needed to be made in the bill, which forced the parliament to postpone the hearing. As of now, the parliament plans to hold the hearing in February.
The cryptocurrency market has been developing rapidly over the past few years. The market has seen massive adoption in India, but the government of the country has failed to adopt a regulatory framework for the cryptocurrency market.
India has been working on developing a Crypto Bill for a long time now. As of now, market experts believe that it is now important for the country to find a way to adopt a regulatory framework that supports the further development of the market, while also guaranteeing the safety and security of retail traders.
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