An Indian Crypto Investment Platform Is Set to Offer Bitcoin ETFs to Investors From India

Mudrex, an Indian crypto investment platform, is ready to offer its Indian investors a chance to purchase U.S. spot Bitcoin ETFs. This is a Y-Combinator-backed company that has its headquarters in California, U.S. But, it also features a subsidiary registered with the Intelligence Unit of India.

Indian Investors Can Now Purchase U.S. Spot Bitcoin ETFs

Edu Patel, the CEO and co-founder of Mudrex, stated their plans to offer U.S. spot Bitcoin ETFs to retail and institutional investors in India. He noted that this opportunity is much more valuable to institutional investors as it was already there for retailers.

Every retail client from India had access to spot Bitcoin ETFs via U.S. stock investing companies. However, this move by Mudrex possibly made it the first company to offer this service to institutions in the country. Patel is certain that they are the first ones to offer this type of investment.

During the first phase, the company will only list 4 spot ETFs such as Vanguard, BlackRock, Franklin Templeton, and Fidelity. As we mentioned in the intro, this is a California-based company backed by Y-Combinator.

Mudrex features a subsidiary registered with the Intelligence Unit of India as a way to offer its services in the country. But, it also has licenses in Italy and Lithuania, giving it a chance to compete in the European market. It collaborates with several vendor partners as a way to conduct transactions.

The same goes for the purchase of ETFs. Mudrex will process the transaction via several broker partners from the U.S. Then, the company’s Indian subsidiary will facilitate the service for the spot Bitcoin ETF.

Investing in Crypto in India

There is a division of India’s crypto regulations between the government led by the Finance Ministry and the central bank, the Reserve Bank of India. This means that the development is unprecedented.

The Reserve Bank of India is strongly against cryptocurrency. Recently it stated that the country doesn’t need to do the same as the U.S. with the crypto ETFs. It believes that it’s a risky move that the economy cannot afford.

Yet, the Finance Ministry’s Intelligence Unit decided to register over 20 Indian crypto service providers. However, it did impose harsh taxes on this featured sector. The two institutions agree on the need to protect India’s investors and the economy as a whole, despite their different regulatory focus.

Patel said the spot-Bitcoin ETF works as a security. He noted that every Indian is able to buy such securities under the Liberalised Remittance Scheme (LRS). Because of that, those who want to get access to BTC can now start using the cryptocurrency via ETFs.

It’s worth mentioning that the LRS simplifies India’s overseas investments. There is an overall LRS limit of $250,000 per year, set by the Reserve Bank of India.

Now, Mudrex will allow investing in spot Bitcoin ETFs on its financial platform with a minimum limit of $5,000 and a maximum limit of $250,000. Patel finished by saying that they have a strong banking relationship that helps users conduct these transactions smoothly.