If the International Financial Services Centre (IFSCA) approves India INX, the country's first Bitcoin and Ethereum Futures ETF could be launched in Gift City.

BSE's international arm, in collaboration with Kling Block Chain IFSC, has applied to the GIFT IFSC for permission to launch digital asset-based products. To research and deploy the products, the exchange has inked a memorandum of agreement with Kling Block Chain IFSC.

"India INX at GIFT IFSC is looking at investigating the launch of digital asset-based products and has already made an application to IFSCA under Regulatory Sandbox," stated V Balasubramaniam, MD and CEO of India INX. This is part of our product innovation programme, which will allow us to compare our offers to those of other international finance centres. After gaining all necessary regulatory clearances, we will launch items in these new-age assets in full compliance with the law."

Torus Kling Blockchain IFSC, a 50:50 joint venture between Sam Ghosh's Cosmea Financial Holdings and Kling Trading India, is investigating India's first Bitcoin and Ethereum Futures ETF as well as Metaverse US listed large-cap discount certificates. Outside of the United States, this will be the first crypto-backed futures ETF. With smart order routing, Torus Kling Blockchain will give India INX with round-the-clock deep liquidity. Torus's global distribution team and partners will distribute the product.

Because ETFs are treated like stocks, residents of India will be allowed to invest in the Bitcoin Futures ETF under the liberalised remittance system. Because of the regulatory uncertainties surrounding cryptocurrencies, investors have been hesitant to invest in them. If the IFSCA approves, Indian residents will be able to invest in a crypto ETF through INX-registered brokers.

In the first two years, Torus Kling Blockchain hopes to handle $1 billion in assets from consumers who invest in blockchain-backed products through ETFs and discount certificates.

"Crypto assets will be huge in the future," said Krishna Mohan Meenavalli, CEO of Torus Kling Blockchain IFSC. Gift City aspires to be a market leader in terms of dollar assets. The application was submitted in collaboration with INX, and we anticipate receiving approval by March of this year. This is a new asset class that will give domestic and international investors the opportunity to participate in digital assets. "We want to close the gap between digital assets and regulated markets."