- According to Edul Patel, the U.S. spot bitcoin (BTC) exchange-traded funds (ETFs) will be made available to institutional and retail investors in India.
- Mudrex, a California-based platform supported by Y-Combinator, has a registered subsidiary with the India Financial Research Unit.
- This development comes at a time when there is a divide between the Reserve Bank of India (RBI), the central bank of India, and the government led by the Ministry of Finance on the crypto regulatory environment.
Mudrex, based in India, takes the initiative to be the first platform to offer access to spot Bitcoin ETFs in India: Details!
Indian Investors Can Access Spot Bitcoin ETFs
According to Edul Patel, the CEO and co-founder of India-based crypto investment platform Mudrex, they plan to offer U.S. spot bitcoin (BTC) exchange-traded funds (ETFs) to institutional and retail investors in India.
Stating that this service is already available to retail customers, Patel said, “This is much more valuable to institutions because this was already available to retail. As far as we know, we are the first Indian platform to offer this service to institutions,” he added. Patel continued, “We’re definitely the first Indian crypto platform to offer this service.”
In the initial stage, Mudrex will list four spot ETFs – BlackRock, Fidelity, Franklin Templeton, and Vanguard. Mudrex, supported by Y-Combinator and based in California, has a registered subsidiary with the India Financial Research Unit. It also has licenses in Lithuania and Italy. The company will facilitate the processing of real transactions through its U.S. broker partners, while its Indian subsidiary will facilitate the spot bitcoin ETF service, said Patel.
This development coincides with a period of division between the Reserve Bank of India (RBI), the central bank of India, and the government led by the Ministry of Finance on the regulatory environment for crypto. RBI has been against crypto, stating recently that India’s economy cannot afford such a risk and that India does not need to mimic the U.S. in the case of crypto ETFs. However, the Finance Ministry’s Financial Research Unit registered over two dozen Indian crypto service providers and imposed stringent taxes on the sector. While both institutions seem to agree on protecting the Indian economy and investors, their regulatory focuses appear different.
Spot Bitcoin ETF Investment under LRS
“Bitcoin spot ETF functions as a security, and Indians are allowed to purchase securities under the Liberalized Remittance Scheme (LRS), and as a result, users or especially institutions who want to access bitcoin can start using bitcoin through ETFs and diversify their portfolios,” said Patel.
LRS simplifies overseas investments for Indians. The total LRS limit set by the Reserve Bank of India is $250,000 annually. Mudrex will offer the opportunity to invest at least $5,000 and up to $250,000 in spot bitcoin ETFs on its platform.
“LRS is a tricky topic for most people, and since we have strong banking relationships there (in the U.S.), we can help users carry out these transactions very smoothly, and that’s why these services are significant,” said Patel.
Patel also mentioned that about 20 out of the 350 institutions collaborating with the company have initiated efforts to start the process and expressed volume expectations, with an average ticket size of $110,000.
