The Torus Kling company strongly believes in the future of funds traded on Ethereum. Born of a partnership between Kling Trading and CFH, Torus Kling has recently submitted a request to the Indian regulator to promote its first exchange fund on Ethereum. According to reports, if her application is successful, she would launch the first-ever ETF in India. This could prove beneficial, especially since restrictive policies against cryptocurrencies are not enforced in South Asia.
Approximately $1 billion in funds to manage over several years
To believe The Economic Times, Kling Trading and CFH have teamed up to guarantee Indian investors futures contracts focused on the two most powerful cryptocurrencies: bitcoin (BTC) and ethereum (ETH). But aside from making digital financial assets available, Torus Kling also intends to offer high capitalization rebate certificates on metaversee. Details regarding this project, however, have not been disclosed.
But if Indian regulators approve the application, the ETF will launch in Gift City at the end of the fiscal year, which is the end of the first quarter. In the name of the agreement, Torus will become a liquidity provider for India International Exchange (INX) through a system of sending orders. ETF distribution will be the responsibility of the Torus Kling team and its global partners.
As part of this project, $1 billion provided by investor clients and rebate certificates will be managed over the first two years. According to V. Balasubramaniam, the managing director of INX, the company has already submitted an application to the International Financial Services Centers Authority (IFSCA) for its authorization.
He further clarified that nascent ETFs focused on cryptocurrency assets will be created and managed in full compliance with Indian law as soon as the regulators have given their approval.
Cryptocurrencies take hold in India
India is gaining priority in the cryptocurrency market due to its flexible cryptocurrency policies. Nevertheless, the Torus company faces a major challenge: the IFSCA, the highest regulatory authority in India. It must absolutely receive its agreement, which will not necessarily be easy, especially since the regulator displays a certain mistrust of cryptocurrencies.
Torus still took the lead on the project by successfully submitting a petition to the regulator. At the present stage of things, the only thing missing is the authorization of the IFSCA for an official announcement to be made on the launch of the very first Ethereum ETF in India.
Recall that at the beginning of the past year, information about a potential ban on cryptocurrencies had been mentioned. As recently as last December, the media had pointed out that Indian authorities would continue to regulate the digital financial asset sector.
Let’s end by noting that Indian financial companies are still struggling to launch their first Ethereum ETF, even though the cryptocurrency has peaked 3% for the past 7 days. According to CoinMarketCap, ETH is trading at $3,277, with a market capitalization reaching 390 billion. This rise in ETH would be due to the fact that BTC has been in decline since December.
In India, cryptocurrencies are becoming more and more important. They are put forward by many companies, including Torus Kling, which has also filed a request with the authorities in order to obtain authorization to launch an Ethereum ETF. If his request is accepted, India will finally have its first Ethereum ETF.
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