YEREVAN (CoinChapter.com) – Mudrex, an Indian cryptocurrency investment platform backed by Y-Combinator and headquartered in California, will offer US Bitcoin ETFs to Indian investors, namely those from BlackRock, Fidelity, Franklin Templeton and Vanguard. It’s a plan.
Mudrex Brings US Bitcoin ETF to India
Edul Patel, CEO and co-founder of Mudrex, announced plans to make its US spot Bitcoin (BTC) exchange-traded fund (ETF) available to both institutional and retail investors in India. Retail customers have previously been able to invest in Bitcoin spot ETFs through US equity investment firms, but to Patel’s knowledge, Mudrex is the first company in India to extend this service to institutional investors.
“We are definitely the first Indian cryptocurrency platform to do this,” Patel added.
“Individual investors already had access, but institutions will find this even more valuable.”
Mudrex expands cryptocurrency ETF services amid Indian regulatory environment
Mudrex’s announcement appears to run counter to India’s complex cryptocurrency regulatory scene. Notably, the Reserve Bank of India (RBI) and the Finance Ministry have different views on how to approach cryptocurrency legislation. For example, the RBI argues that India does not need to follow the United States in adopting cryptocurrency ETFs, citing economic risks.
On the other hand, the Treasury has registered many Indian cryptocurrency service providers and imposed high taxes on them. Both aim to protect the Indian economy and investors, but focus on different regulatory aspects.
Bitcoin ETF Options Expand for Indians
Patel added that spot Bitcoin ETFs act as securities in India and that Indian investors can buy and sell them under the “Liberalized Remittance Scheme” (LRS). This means that users, especially institutions seeking Bitcoin access, can now use ETFs to add diversity to their portfolios.”
The Liberalized Remittance Scheme (LRS) allows Indians to invest abroad. The Reserve Bank of India has set the LRS limit at $250,000 per annum. As a result, Mudrex allows investments in Bitcoin spot ETFs from $5,000 up to $250,000 on its platform.
“LRS can be tricky, but because we have strong banking relationships with the US, we can facilitate these transactions for our users. This is why our service is so important,” Patel explained.
Patel also noted that out of the 350 institutions Mudrex is working with, about 20 have started the sign-up process. He expects the average investment size to be about $110,000.