a fund of funds Invests in other schemes. Invesco’s Blockchain Fund is structured to invest in ETFs (Exchange Traded Funds) domiciled in Ireland, which place bets on the listed equities of companies in developed and emerging markets that participate. blockchain ecosystem, The fund had got approval from the market regulator SEBI,
Invesco Mutual Fund said in a release, “From the developments of the past few days, Indian Parliamentarians have been meeting participants in the country’s digital asset industry, which will likely be shaped by a new legislative framework.” “In light of the above, we believe it is important for investors to fully understand all aspects before making long-term investment decisions.”
The fund launch caught the attention of many investors, who saw it as a legitimate way to get exposure to the cryptocurrency. Analysts say that the scheme would have received huge subscriptions.
“There was a possibility that the fund would be treated as a crypto fund even though it is not one, given the unusual frenzy around crypto currency at the moment. This is a precautionary move by the fund house,” said Dhirendra Kumar, Founder, Value Research.
Invesco’s Blockchain Fund of Funds does not invest directly in crypto, sources said. While blockchain is widely associated with cryptocurrencies like bitcoin, it is not the same thing as crypto. Blockchain is the technology that enables the existence of cryptocurrencies.
The fund’s investment universe consists of public global companies in both developed and emerging markets that invest in the entire blockchain ecosystem. Blockchain is a network that allows companies and people to maintain and transfer information instantly. The technology is used in areas such as cryptocurrency mining hardware, technology operations, financial services, and payment systems.
The debate over whether cryptocurrencies should be allowed in India has erupted of late, with Prime Minister Narendra Modi chairing a meeting last week to discuss the matter. The Reserve Bank of India is against virtual currencies in the country, with Governor Shaktikanta Das saying cryptocurrencies are a threat to the country’s economic stability.