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Flipkart Founder Backed MF Files for Blockchain Fund

This blockchain fund invests in another fund.

On Thursday, it was reported that the Government will not be banning but regulating cryptocurrency.

The very next day, on December 3, Flipkart co-founder Sachin Bansal backed Navi Mutual Fund has filed for a blockchain fund with the Securities and Exchange Board of India (SEBI) .

The fund is called Navi Blockchain Index Fund of Fund (FoF). It will invest in an Exchange Traded Fund (ETF) called Indxx Blockchain Index (IBI) which itself invests in companies using or dealing with blockchain technology.

IBI tracks the performance of companies that are either actively using, investing in, developing, or have products that are poised to benefit from blockchain technology.

It has 100 constituent companies with some renowned Indian ones as well such as Infosys Ltd. and Wipro Ltd-adr.

IBI has been backtested to March 18, 2016 and has a live calculation date of December 07, 2017.

Just last month, SEBI had cleared the Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF) by Invesco Mutual Fund.

But Invesco had to delay the rollout of the ETF because of regulatory uncertainties.

This is a bottleneck for many entrepreneurs. Even the well-established crypto exchanges are bearing the brunt of regulatory ambiguity especially with respect to advertising. That’s why some of them are refraining from advertising until the next set of guidelines are issued.

Plethora of investment options and business opportunities can be opened once a regulatory framework is in place. India ranks 2nd in the Chainalysis Global Crypto Adoption Index and 6th in the Global DeFi Adoption Index. The country also has a vibrant startup culture. It has the potential to become a powerhouse of the crypto industry. 

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