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Invesco CoinShares launches mutual fund for Indians


TL;DR Breakdown

  • Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF) is India’s premier mutual fund scheme. 
  • The fund will enable Indian investors to participate in the emerging global blockchain industry and invest in crypto-based companies.
  • As a SEBI-approved ‘Feeder Fund,’ Indian investors can commit their investments once it launches on November 24.

The Securities and Exchange Board of India (SEBI) has granted Invesco India CoinShares the green signal to launch the ‘Feeder Fund’ of Blockchain Stocks. The fund is India’s premier mutual fund scheme to facilitate investment in global companies across the blockchain space.

Per Invesco Asset Management India, the fund will open up for Indian investors from next week – November 24 until December 8, 2021. The fund currently invests in a global venture that redistributes these investments into about 50 companies. Some participant companies in this group include the CME Group, Square, Coinbase, IBM, Oracle, AMD, among others.

Understanding India’s premier Invesco CoinShares mutual fund

SEBI’s decision to approve the ‘Invesco CoinShares Mutual Fund’ is a welcome innovation among enthusiasts. This mutual fund will introduce Indians to global cryptocurrency-based companies and also presents them with new investment opportunities.

Invesco CoinShares Global Blockchain exchange-traded fund invests in several other funds and blockchain space companies. As per a September publication, the exchange-traded fund delivered a record-breaking return of 82% in 2020, a result that the Indian fund will look to replicate.

The CEC Capital Director, a crypto ETF expert, Laurent Kssis, further explained the fund as a “feeder fund” that is not directly exposed to Bitcoin or any other digital asset. “Invesco CoinShares Global Blockchain ETF Fund of Fund is nothing more than a feeder fund authorized to invest into an equity Irish domiciled blockchain UCITS ETF, and there is no direct investment in crypto or bitcoin.” 

Invesco is an Atlanta-based asset management company that filed an application with the Securities and Exchange Board of India (SEBI) to approve a mutual fund that invests in blockchain firms in September 2021. Invesco has also applied to the U.S. Securities and Exchange Commission (SEC) to list an ETF with exposure to Bitcoin and other digital assets.

In the meantime, the U.S. SEC has delayed its decision on the Spot BTC ETFs, using up most of its allotted 240 days review time. However, it will have to announce its decision soon as the review period draws to a close.

Large Indian banks turn towards blockchain adoption

The Indian cryptocurrency industry has witnessed exponential growth over the years. Not long ago, there was a ban on banks dealing with virtual currencies. However, as blockchain technology evolves into the technology of the present and future, the embargo cannot sustain for much longer. In the meantime, crypto players and investors can only work around the existing framework, even though the future outlook looks optimistic.

Other traditional sectors in India are also looking to ride the blockchain wave. For example, Amitabh Bachchan, a national celebrity and legendary actor, launched his own NFT collection, signaling the adoption of crypto into traditional hypothetical beliefs.

Indian banking giants including SBI, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Bajaj Allianz, and 10 others are all set to adopt blockchain. As seen in several reports, this novel system will verify data using invoices on goods and services tax (GST) and e-way bills, which will speed up the transactions while mitigating the risk of fraud.

As previously reported by Cryptopolitan, the Indian government held a meeting last week to discuss the future of crypto in India. Thus, it is safe to conclude that the country is not planning to ban digital assets to regulate them. 

Mansi Singh

Mansi Singh

Mansi is a 19-Year old financial markets enthusiast who thoroughly enjoys discussions that revolve around the implication of fintech for the future of humanity. Coming from a Computer Science background, she joins the intrepid Cryptopolitan team to find solutions in the higher crypto and blockchain spheres.

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