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Indian regulator greenlights first blockchain feeder fund

forkast.news 17 November 2021 10:44, UTC
Reading time: ~2 m

Indian investors will now get exposure to global companies in the blockchain ecosystem as the Securities and Exchange Board of India greenlighted the Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF).

Fast facts

  • The feeder fund will invest in the Invesco CoinShares Global Blockchain UCITS exchange-traded fund (ETF), formerly known as Invesco Elwood Global Blockchain UCITS ETF. The name changed when CoinShares acquired the ETF from Elwood in July. The fund holds investments in Canada-based Bitcoin miner Bitfarms, U.S. crypto exchange Coinbase and the world’s biggest corporate Bitcoin holder, MicroStrategy.
  • The Invesco CoinShares Global Blockchain ETF FoF will be open for offering between Nov. 24 and Dec. 8.
  • “As blockchain technology is still in its early days, the potential for changing the global economy is immense. Like the internet, blockchain presents an opportunity for investors who can capture this hidden potential,” Invesco said in a product document.
  • The approval of a blockchain FoF comes at a time when the Indian government is still fine-tuning the details of crypto and blockchain regulations in the country. While a total ban is now off the table, it remains to be seen whether crypto will be classified as an asset or commodity and how crypto income will be taxed. According to the first parliamentary meeting on the future of crypto held on Monday, crypto legislation can be expected before the budget session starts in February next year. The crypto bill could be up for discussion in the next session of parliament scheduled to start later this month.

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