Invesco is giving Indian investors exposure to Coinbase and MicroStrategy through a new pooled fund that invests in several sub-funds.
The CoinShares Global Blockchain UCITS ETF will be open for Indian investors between Nov. 24 and Dec. 8 this year, according to literature shared by Invesco Asset Management India.
CoinShares and Invesco Asset Management India are launching the vehicle, which relies on an index of 50 publicly traded companies with exposure to crypto assets. That includes everything from Galaxy Digital to Square to Tesla.
The new fund is domiciled in Ireland and is available to Indian investors and aims to generate returns by investing predominantly in units of Invesco CoinShares Global Blockchain UCITS ETF, an overseas ETF. The fund will give investors access to blockchain technology companies with exposure to global companies or businesses, which are not available in India for investment.
“This [CoinShares Global Blockchain UCITS ETF] is nothing more than a feeder fund allowed to invest into an equity Irish domiciled blockchain ucits ETF and there is no direct investment in crypto or bitcoin,” said crypto ETF expert Laurent Kssis, director of CEC Capital.
In September, Atlanta-based Invesco applied with the Securities and Exchange Board of India (SEBI) to launch a mutual fund that invests in blockchain companies. The investment has also applied to the U.S. Securities and Exchange Commission (SEC) to list an ETF with bitcoin exposure.
Recently, there have been more and more ETFs being listed, indicating some amount of market maturity and acceptance from regulators. In a major moment for the industry in October, the SEC greenlit its first batch of U.S. bitcoin futures ETFs.
The arm’s-length approach to crypto investing may be the only option for some.
“Some investors may think there is a shortcut to investing in an equity blockchain fund where they have exposure to crypto. However, with the current hype and certain crypto bans in India, many may be forced to invest as this is the only choice available,” said Kssis.