8 months ago
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Since the spot Bitcoin ETF operates as a security, Indian individuals are authorized to obtain securities under the Liberalised Remittance Scheme (LRS).
The latest report suggests that Indian crypto investors will soon get an option to invest in the newly launched and much-celebrated US spot Bitcoin ETFs. Mudrex, the India-based crypto investment platform, will soon provide this facility to retail and institutional crypto investors from India.
In an interview with CoinDesk, Edul Patel, CEO and co-founder of Mudrex, commented:
“This holds significantly greater value for institutions, given that it was previously accessible to retail investors.”
Patel noted that retail clients in India can still access the Bitcoin ETF through US stock investing firms.
However, this latest development makes Mudrex the first company to offer this service to institutions. Within the first phase of its offering, Mudrex will list the top four Bitcoin ETFs from BlackRock, Fidelity, Vanguard, and Franklin Templeton.
Supported by Y-Combinator and headquartered in California, Mudrex operates a subsidiary registered with the Financial Investigation Unit of India. Additionally, the company has established a presence in the European Union, holding licenses in Lithuania and Italy. Mudrex will coordinate the actual transaction processing through broker partners in the US, while its Indian subsidiary will oversee the provision of the spot-bitcoin ETF service, said Patel.
Interestingly, the development comes at a time when India’s crypto regulatory landscape remains divided between the Central Bank RBI and the Finance Ministry. The RBI has undertaken an extremely cautious stand on cryptocurrencies, stating that India doesn’t need to follow the US’s footsteps around crypto ETFs.
On the other hand, The Finance Ministry of India has registered over two dozen Indian crypto exchanges, however, has imposed hefty taxes on crypto gains.
Simplifying Bitcoin ETF Investments for Indians
Patel explained that the spot Bitcoin ETF functions as a security, and Indians are permitted to acquire securities under the Liberalised Remittance Scheme (LRS). Consequently, individuals or institutions seeking access to Bitcoin can now utilize ETFs to incorporate BTCs into their portfolios and thus diversify their investments.
The LRS streamlines overseas investments for Indian citizens, with the Reserve Bank of India setting the annual LRS limit at $250,000. Investors can leverage Mudrex’s platform to engage in spot Bitcoin ETFs, with a minimum investment of $5,000 and a maximum cap of $250,000. Patel said:
“The LRS is the tricky part for most people and over there (in the US), because we also have strong banking relationships, we’re able to help users do these transactions in a very seamless way, and that’s why these services are important.”
He also added that 20 of the 350 institutions working with Mudrex have already initiated the process of joining them having an average ticket size of $110,000.
