Indian cryptocurrency investment platform Mudrex plans to offer a US spot Bitcoin (BTC) exchange-traded fund (ETF) to institutional and individual investors in India, CEO and co-founder Edur Patel said. Told.
“This is much more valuable to institutions because it was already available to retailers,” Patel said in an interview with CoinDesk. Patel said domestic retail clients can access Spot Bitcoin ETFs through US equity firms, but “to our knowledge” the company is the first in India to offer this service to institutional investors. “We are certainly the first Indian crypto platform to offer this service.”
In the first phase, Mudrex plans to list four spot ETFs: BlackRock, Fidelity, Franklin Templeton, and Vanguard.
Backed by Y-Combinator, California-based Mudrex has a subsidiary registered with Indian intelligence agencies. It also has a foothold in the European Union and has licenses in Lithuania and Italy. Patel told CoinDesk that the company will ensure the actual transaction processing through its U.S. broker partner, while its Indian subsidiary will facilitate the SpoffBitcoin ETF service.
This development is unprecedented as India's crypto regulatory environment is fragmented between the central bank, the Reserve Bank of India (RBI) and the Ministry of Finance-led government. The RBI has been adamantly opposed to cryptocurrencies and recently said that India does not need to follow the US in its stance on crypto ETFs as the Indian economy cannot afford such risks. However, the Ministry of Finance's Intelligence Bureau has registered more than 20 crypto service providers in India, imposing strict taxes on the sector. While the two sides agree on the need to protect India's economy and investors, their regulatory focus may look different.
“Bitcoin Spot ETF acts as a security and Indians are allowed to purchase securities under the Free Remittance Scheme (LRS), which allows users and institutions, among others, who wish to access Bitcoin to , you can now start using Bitcoin in the following ways: “ETFs are meant to diversify your portfolio,'' Patel said.
LRS simplifies overseas investment for Indians. The overall LRS limit prescribed by the Reserve Bank of India is $250,000 per year. Mudrex facilitates investments in Spot Bitcoin ETFs on its platform with a minimum investment of $5,000 and a maximum investment of $250,000.
“LRS is the difficult part for most people and we have strong banking relationships over there (in the US) so we can help our users make these transactions in a very seamless way. That's why these services are so important,'' Patel said.
Patel also said that of the 350 institutions affiliated with the company, about 20 have begun the participation process, and volume is expected with an average ticket size of $110,000.
