Four spot ETFs will be listed by Mudrex in the first phase.
The company’s U.S. broker partners would handle the transaction processing.
According to Edul Patel, CEO and co-founder of Mudrex, an Indian cryptocurrency investing platform, institutional and individual investors in India will soon be able to purchase U.S. spot bitcoin (BTC) ETFs.
Since this was previously accessible to retailers, Patel said in an interview that it is far more beneficial to institutions. U.S. stock investment firms provided retail consumers with access to spot-bitcoin ETFs, but Patel claims that they are the first in India to provide this service to institutions.
Under Liberalised Remittance Scheme
Four spot ETFs—BlackRock, Fidelity, Franklin Templeton, and Vanguard—will be listed by Mudrex in the first phase. Mudrex, a California-based company financed by Y-Combinator, has an Indian subsidiary that is registered with the Intelligence Unit. Additionally, it has a foothold in the EU via its licenses in Italy and Lithuania. As Patel informed, the company’s U.S. broker partners would handle the transaction processing, while the Indian subsidiary will handle the spot-bitcoin ETF service.
Patel stated:
“The bitcoin spot ETF works as a security and Indians are allowed to purchase securities under the Liberalised Remittance Scheme (LRS) and, as a result, users or institutions specifically, who do want to get access to bitcoin can now start using the bitcoins through ETFs to diversify their portfolio.”
The Reserve Bank of India (RBI) and the government, headed by the Ministry of Finance, have long been at odds over crypto regulation in India, thus this new move comes as a complete surprise.
The RBI lately said that India’s economy cannot afford to follow the United States’ stance on cryptocurrency exchange-traded funds (ETFs).