Invesco puts off blockchain fund plan over regulatory flux
Mumbai: Invesco Mutual Fund on Wednesday said that it has deferred the launch of its CoinShares Global Blockchain ETF fund of funds (FoF), which was scheduled to open for subscription on November 24. The fund house cited recent meetings between lawmakers and participants in the countrys digital assets industry.
Invesco had announced the scheme where the underlying fund invests in listed equities of companies in developed and emerging markets that participate in the blockchain ecosystem. According to Invesco, the government meetings are likely to culminate in a new legislative framework being formulated. In light of the above, we believe it is important for investors to fully understand all aspects before making long-term investment decisions, a statement issued by the fund said. It added that new launch dates would be announced later.
Invesco Asset Management (India) manages over Rs 53,747 crore across mutual funds, portfolio management services and offshore advisory schemes. It is an arm of the Atlanta-headquartered Invesco Group. Sebi had this week cleared the CoinShares Global Blockchain ETF FoF the first such investment vehicle from India. CoinShares Group promotes digital asset investing and was the first to launch a regulated bitcoin investment fund in 2014. It also offered the worlds first bitcoin-based securities on a regulated exchange in 2015. The objective of the FoF was to invest in Ireland-based Invesco CoinShares Global Blockchain UCITS ETF. The joint venture fund holds a stake in bitcoin mining companies and crypto exchanges.
This week, representatives of the industry dealing with cryptocurrencies met a Parliamentary standing committee on finance headed by BJP MP Jayant Sinha and called for regulating the cryptocurrencies as a ban could not be implemented. While the Reserve Bank of India (RBI) has taken the stand that cryptocurrencies are a serious threat to financial stability, it has not been able to ban them after the Supreme Court overturned the central banks decision prohibiting banks from dealing with crypto exchanges.
Reports that India has over 10 crore crypto owners had raised an alarm, although RBI governor Shaktikanta Das said that the numbers appeared to be exaggerated and that a majority of investors have bought only small amounts. He said that there was an attempt to establish that investment in crypto assets was widespread, which was not the case.
Invesco had announced the scheme where the underlying fund invests in listed equities of companies in developed and emerging markets that participate in the blockchain ecosystem. According to Invesco, the government meetings are likely to culminate in a new legislative framework being formulated. In light of the above, we believe it is important for investors to fully understand all aspects before making long-term investment decisions, a statement issued by the fund said. It added that new launch dates would be announced later.
Invesco Asset Management (India) manages over Rs 53,747 crore across mutual funds, portfolio management services and offshore advisory schemes. It is an arm of the Atlanta-headquartered Invesco Group. Sebi had this week cleared the CoinShares Global Blockchain ETF FoF the first such investment vehicle from India. CoinShares Group promotes digital asset investing and was the first to launch a regulated bitcoin investment fund in 2014. It also offered the worlds first bitcoin-based securities on a regulated exchange in 2015. The objective of the FoF was to invest in Ireland-based Invesco CoinShares Global Blockchain UCITS ETF. The joint venture fund holds a stake in bitcoin mining companies and crypto exchanges.
This week, representatives of the industry dealing with cryptocurrencies met a Parliamentary standing committee on finance headed by BJP MP Jayant Sinha and called for regulating the cryptocurrencies as a ban could not be implemented. While the Reserve Bank of India (RBI) has taken the stand that cryptocurrencies are a serious threat to financial stability, it has not been able to ban them after the Supreme Court overturned the central banks decision prohibiting banks from dealing with crypto exchanges.
Reports that India has over 10 crore crypto owners had raised an alarm, although RBI governor Shaktikanta Das said that the numbers appeared to be exaggerated and that a majority of investors have bought only small amounts. He said that there was an attempt to establish that investment in crypto assets was widespread, which was not the case.
