Mudrex, an Indian cryptocurrency investment platform, intends to introduce U.S. spot Bitcoin exchange-traded funds (ETFs) to target both institutional and retail investors within India, according to CEO and co-founder Edul Patel.
The move comes amid India’s latest government action to tighten offshore crypto exchanges regulation.
Mudrex to Offer Four Spot Bitcoin ETFs
In an interview with CoinDesk, Patel emphasized the value of spot Bitcoin ETFs for institutional investors, noting that they already exist for retail clients in the country. According to him, Mudrex is the first entity in India to extend this service to institutions.
During its initial phase, the platform will first feature listing four spot Bitcoin ETFs – BlackRock, Fidelity, Franklin Templeton, and Vanguard.
Patel elaborated that spot Bitcoin ETFs work as security. Hence, Indians can acquire them under the Liberalized Remittance Scheme (LRS). Consequently, users and institutions seeking exposure to Bitcoin can leverage ETFs to diversify their portfolios.
The Liberalized Remittance Scheme streamlines overseas investments for Indians, with the Reserve Bank of India setting the overall LRS limit at $250,000 annually. Mudrex plans to facilitate investments in spot Bitcoin ETFs with a minimum investment requirement of $5,000 and a maximum cap of $250,000.
Regarding participation, Patel mentioned that approximately 20 out of the 350 institutions associated with Mudrex have initiated the onboarding process. He anticipates significant volumes, with an average ticket size of $110,000.
Mudrex Expands Amid Regulatory Concerns
Mudrex, with backing from Y-Combinator and headquartered in California, operates a subsidiary registered with India’s Intelligence Unit. Additionally, the company has a presence in the European Union, and it has licenses in Lithuania and Italy.
Patel clarified that while broker partners in the U.S. will handle the actual transaction processing, Mudrex’s Indian subsidiary will oversee the spot Bitcoin ETF service.
Meanwhile, the Reserve Bank of India (RBI) has maintained a steadfast stance against crypto, recently asserting that India should not mirror the U.S.’s approach to ETFs due to economic risk considerations.
On the other hand, the Finance Ministry’s Intelligence Unit has registered over two dozen Indian crypto service providers and imposed substantial taxes on the sector. While both entities prioritize safeguarding the Indian economy and investors, their regulatory strategies differ.
India’s government recently blocked Binance’s URLs in the country, citing non-compliance. During that time, Mudrex announced that it would facilitate the free transfer of over 200 tokens from Binance to help users safeguard their assets. Patel mentioned that the move saw over 30,000 customers register on Mudrex. Other exchanges that were shut down included OKX and Kucoin.
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