Torus Kling Blockchain To Launch India’s First Cryptocurrency, Ethereum ETF

Asian traders will trade Ethereum ETF from their continent for the first time. The renowned businesses Kling Blockchain and Cosmea Financial Holdings recently announced their partnership after signing an agreement. India and the larger Asia region have never had any ETF trading companies in the past, which will significantly boost the crypto enthusiasts in the region. Reports indicate that the trading fund will be initiated in early March 2022 following a memorandum of understanding between the two parties recently.

The Gujarat International Finance Tech (GIFT) event will see the availing of Ethereum ETF to traders on the international financial services center(IFSC), a body that regulates financial centers in special economic zones. A sandbox arrangement will be put in place to gauge the effectiveness of the blockchain tech-operated trading model. The sandbox test is crucial to ensure there is a balance between the new inventions in the financial market and the welfare of participants.

Regulatory Approval By INX

The Indian International Exchange is responsible for regulatory approval of financial markets in India. The INX CEO has indicated that regulatory approvals for the new venture in the region are underway. Once complete, the market will commence its operations under the IFSCA (International Financial Services Center Authority) regulations.

The Kling Blockchain CEO Krishna Mohan has revealed that their company will offer trading funds to the India INX. At the same time, their CFH counterpart will oversee the spread of resources and control mechanisms for the new venture.

The Trading Volume on The Rise

The volume of the global cryptocurrency derivatives is slightly over $3 trillion and still rising. In India alone, the assets under management (AUM) have doubled from 1.5lakh crore -3.0lakh crore during the 2021 financial year. The exchange-traded products (ETPs) are worth over $1 trillion, approximately 15% by volume of the financial assets globally.

The high volume in investment is proof that the crypto industry is famous globally and should get a boost to meet investors’ liquidity needs, especially those with low capital investment. Torus Kling blockchain is aiming to hit the $1 billion mark in asset under management (AUM) volume within the first 24 months in the market. The liquidity provider believes they can hit the mark with funds from the investors trading ETFs and debentures that will be used to acquire securities in the market with a fixed price.

The sole provider of ETF assets with crypto support globally is the US and Canada. With the Saas provider and blockchain experts joining efforts, this deal will yield a top-notch ETF platform in Asia.

The Future of Ethereum Crypto-Currency In India

The ascension to the ethereum cryptocurrency trade in India comes after the US and Canadian regulators launched the BTC and ETH ETF trade in the stock exchange market. This makes a significant step in the cryptocurrency industry in India and worldwide. Crypto trading and foreign exchange have become popular among investors, individuals, and corporations. The financial market is valuable, with crypto and its derivatives recording the highest growth.

The rapid growth rises from the unlimited capital investment value and the accommodation for low capital investors in the market. Investors have a rising demand to hold and trade crypto globally as they embrace digital currencies like Bitcoin and Ethereum.  ETF trade allows traders to control their finances in a decentralized financial system

The transaction cost of virtual currencies like Bitcoin and Ethereum is low, especially during currency exchange. Also, the two currencies are independent of other assets and can hedge against inflation.

Obstacles To The Future of Crypto in India

The Torus Kling and Cosmea partnership will open a new chapter in the virtual currency market in India and globally. Traders will access liquidity from the two companies backed up with blockchain technology for advanced trade platform features. However, there is no guarantee that traders will be free of obstacles along their trading journey.

Here are some of the obstacles that may limit the success of this market.

• Cryptocurrency Frauds

The crypto market is open for large and small-scale investors, some of whom have little technological know-how or none. With cyber hackers perfecting their game, investors face the challenge of losing their investment. A trader who wants to invest in India and outside should take time to learn the ways of staying free of cyberattacks.

• The Government Bill on the Way

The Indian government is set to pass a new bill when they meet in parliament during the winter session. Although the bill’s contents may not be precise as of now, analysts are projecting regulatory measures on crypto. Earlier on, the government prohibited transactions using crypto, but the ban was lifted through a court order. While analysts have raised all manners of speculation on how the issue might pan out, it’s still not clear what action, if any, the government will take. 

• The Risk Involved

Cryptocurrencies are highly volatile, and exchanging cryptos is a risky investment. Ethereum ETF cryptocurrency trade is rewarding if you know how to manage the risk involved and you enter trades quickly and exit promptly. Most of the low capital investors may join the market with the hope of getting rich quickly and end up losing their investment.

Key Takeaways

The Ethereum ETF  launch will bring a new dawn in the crypto market in India and globally. With the software as a service (Saas) input by Cosmea Financial Holdings and liquidity by the Torus Kling blockchain, the future of decentralized finance looks positive in India and globally.

Cryptocurrency enthusiasts in India have the opportunity to earn trading from home.