Invesco’s Blockchain Fund on hold

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Invesco Mutual Fund has decided to delay the launch of its blockchain fund in India because of uncertainty around the cryptocurrency investments rules in India.

The fund house planned to launch ‘Invesco CoinShares Global Blockchain EFT Fund of Fund’- first of its kind here on November 24 but has put it on hold.

A Fund of Fund invests in other existing mutual fund schemes. Invesco’s blockchain fund plans to invest in Ireland-domiciled ETF (Exchange Traded Fund). It focuses on listed companies in emerging and developed countries participating in the blockchain ecosystem. SEBI (Securities Exchange Board of India) approved the fund.

The Indian lawmakers have been holding meetings and discussions with the country’s digital asset industry for the past few years to frame a legislative framework for the industry. The fund house suggests investors fully understand all the aspects thoroughly before making any long-term investment.

Many investors found this fund attractive as it is a legitimate way to get exposure to the cryptocurrency market. Analysts expect this fund to get huge subscriptions.

 It is not a cryptocurrency fund despite the unusual craze around the crypto market at the moment.

Invesco’s Blockchain Technology Fund of Fund does not directly invest in crypto markets. Blockchain Technology is just widely associated with cryptocurrencies, but it has alternative uses too.

Blockchain Technology did not come yesterday. It is more than ten years old. Companies use this technology for various reasons like management of contracts, verification of raw materials, digital identification, and other routine matters. But, blockchain is the reason for cryptos existence.

The fund will allocate funds to global companies in developed and emerging markets investing in the blockchain ecosystem. Blockchain helps to transfer and maintain information instantly. Financial services, payment systems, cryptocurrency mining hardware, technology operations use blockchain.

There is an ongoing debate in the Indian parliament with Prime Minister Narendra Modi chairing the meet regarding the approval of using crypto in India. RBI governor Shaktikanta Das is against virtual currencies as they can harm the financial and macroeconomic stability of the country.

No one can ban cryptocurrencies but framing a regulation to keep a check on all the activities in the crypto market is necessary.

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