Invesco MF defers India’s first ever blockchain fund2 min read . Updated: 17 Nov 2021, 11:03 PM IST
- The scheme was originally scheduled to open for subscription on 24 November
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NEW DELHI : Invesco Mutual Fund on Wednesday announced that it has deferred the launch of Invesco CoinShares Global Blockchain ETF Fund of Funds (FoF), given the uncertainty around the regulations of cryptocurrencies in India. The global feeder fund is the first scheme in India to get approval from the Securities and Exchange Board of India (Sebi) that offers exposure to global companies participating in the blockchain ecosystem.
The approval of a blockchain fund by an Indian regulator has come at a time when the Indian government is looking to come out with regulations on cryptocurrencies such as bitcoin and ethereum.
The scheme was originally scheduled to open for subscription on 24 November. The asset management company (AMC) will announce the new launch date later.
“From the developments of the last few days, Indian lawmakers have been meeting participants in the country’s digital assets industry, which will likely culminate in a new legislative framework being formulated. In light of the above, we believe it is important for investors to fully understand all aspects before making long-term investment decisions," Invesco Mutual Fund said in a note.
The talks around regulating cryptocurrencies have gathered pace in the recent past after the Parliament standing committee on finance met cryptocurrency stakeholders on Monday to explore the opportunities and challenges involving crypto financing.
According industry executives who attended the meet, the conversation was positive step and in the right direction.
Even on Saturday, Prime Minister Narendra Modi had chaired a meeting on cryptocurrency regulations.
Mint had earlier reported that it was still unclear whether the cryptocurrency bill will be tabled during the upcoming Winter Session of Parliament (Read more).
Invesco had last week revealed that Sebi had given the nod to Invesco CoinShares Global Blockchain ETF FoF.
The feeder fund by Invesco MF will invest into Invesco CoinShares Global Blockchain UCITS Exchange-traded Fund (ETF). The Ireland-domiciled fund holds investments such as Canadian bitcoin miner Bitfarms Ltd, US crypto exchange Coinbase Global Inc. and the world’s biggest corporate crypto holder MicroStrategy Inc.
The underlying fund, Invesco CoinShares Global Blockchain ETF, has a size of $1.075 billion and is domiciled in Ireland. It was launched on 8 March 2019. Since inception, the ETF has delivered 238% in absolute terms compared to the 1,572% return delivered by bitcoin.
According to Invesco MF, as blockchain technology is still in its early days, the potential for changing the global economy is immense. “Like the internet, blockchain presents an opportunity for investors who can capture this hidden potential," Invesco Mutual Fund said in the product note.
Performance-wise, Invesco CoinShares Global Blockchain UCITS ETF has delivered a return of 94% in the past one year and 53% since its inception In March 2019.
The Ireland-domiciled ETF has assets under management (AUM) of $1.07 billion or ₹8,041.21 crore as of 2 November 2021.
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