Mudrex Launches Bitcoin ETFs for Indian Market

YEREVAN (CoinChapter.com) – Mudrex, an Indian crypto investment platform supported by Y-Combinator and based in California, plans to offer U.S. Bitcoin ETFs to Indian investors, namely those by BlackRock, Fidelity, Franklin Templeton, and Vanguard.

Mudrex Brings U.S. Bitcoin ETFs to India

Edul Patel, CEO and co-founder of Mudrex, announced that they plan to make U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) available to both institutional and retail investors in India. While retail clients could previously invest in spot Bitcoin ETFs through U.S. stock investing firms, Mudrex is, to Patel’s knowledge, the first in India to extend this service to institutional investors.

“We’re definitely the first Indian crypto platform to do this,” Patel noted, adding:

“Institutions will find this much more valuable, although retail investors already had access.”

Mudrex Expands Crypto ETF Services Amid India’s Regulatory Landscape

Mudrex’s announcement appears against India’s complex crypto regulation scene. Notably, the Reserve Bank of India (RBI) and the Ministry of Finance have different views on how to approach crypto laws. For instance, the RBI argues that India doesn’t need to follow the U.S. in adopting crypto ETFs, citing economic risks.

On the other hand, the Finance Ministry has registered many Indian crypto service providers and imposed high taxes on them. Though both aim to protect the Indian economy and investors, they focus on different regulatory aspects.

Broadening Bitcoin ETF Options for Indians

Patel noted that spot Bitcoin ETFs act as securities in India, adding that Indian investors can buy or sell them under the “Liberalised Remittance Scheme (LRS).” This means that users, especially institutions wanting bitcoin access, can now use ETFs to add variety to their portfolios,”

The Liberalised Remittance Scheme (LRS) enables Indians to invest overseas. The Reserve Bank of India has set the LRS limit at $250,000 per year. As a result, Mudrex allows investments in spot Bitcoin ETFs on its platform, starting from $5,000 up to $250,000.

“The LRS can be tricky, but because we have strong banking ties in the U.S., we can make these transactions smooth for our users. That’s why our services are important,” Patel explained.

Patel also mentioned that out of 350 institutions Mudrex works with, about 20 have started the joining process. He expects the average investment size to be around $110,000.