Invesco MF delays India’s first blockchain fund due to legislative uncertainty

The approval of a blockchain fund by an Indian regulator comes at a time when the Indian government is looking to come up with regulations on cryptocurrencies such as Bitcoin and Ethereum.

The plan was originally scheduled to open for subscription on November 24. The Asset Management Company (AMC) will announce the new launch date later.

“From the developments of the past few days, Indian parliamentarians have been meeting participants in the country’s digital asset industry, which will likely culminate in a new legislative framework being drawn up. In light of the above, we believe that investors should be able to It is important to fully understand all the aspects before taking a long-term investment decision,” Invesco Mutual Fund said in a note.

Talks about regulating cryptocurrencies have gained momentum after the Parliament’s Standing Committee on Finance met cryptocurrency stakeholders on Monday to explore the opportunities and challenges associated with cryptocurrency financing.

According to industry executives who attended the meeting, the talks were a positive step and in the right direction.

On Saturday also Prime Minister Narendra Modi chaired a meeting on cryptocurrency regulations.

Mint previously reported that it is still unclear whether the cryptocurrency bill will be introduced during the upcoming winter session of parliament (read more,

Invesco revealed last week that SEBI had approved the Invesco CoinShares Global Blockchain ETF FoF.

Invesco MF’s feeder fund will invest in the Invesco CoinShares Global Blockchain UCITS Exchange-traded Fund (ETF). The Ireland-resident fund has investments such as Canadian bitcoin miner Bitfarms Ltd, US crypto exchange Coinbase Global Inc and the world’s largest corporate crypto holder MicroStrategy Inc.

The underlying fund, the Invesco CoinShares Global Blockchain ETF, is $1.075 billion in size and is domiciled in Ireland. It was launched on 8 March 2019. Since inception, the ETF has delivered an absolute 238%, compared to the 1,572% return offered by bitcoin.

According to Invesco MF, since blockchain technology is still in its early days, it has great potential to transform the global economy. “Like the Internet, blockchain presents an opportunity for investors who can capture this hidden potential,” Invesco Mutual Fund said in the product note.

Performance-wise, the Invesco CoinShares Global Blockchain UCITS ETF has given returns of 94% over the past year and 53% since its inception in March 2019.

ETFs based in Ireland have $1.07 billion, or . Has Assets Under Management (AUM) of 8,041.21 crore as of 2 November 2021.