Mudrex, an innovative Indian cryptocurrency investment platform, has made a groundbreaking announcement regarding its plans to introduce US spot Bitcoin (BTC) exchange-traded funds (ETFs) to both institutional and retail investors in India. In a recent interview, CEO and co-founder Edul Patel shed light on this significant development, emphasizing the platform’s aim to provide access to spot Bitcoin ETFs that were previously only available to retail investors through US stock investing firms.
Expanding on this initiative, Mudrex is set to become the pioneer in offering this service to institutions in India. The platform’s initial phase will feature the listing of the top four BTC ETFs from renowned entities such as BlackRock, Fidelity, Vanguard, and Franklin Templeton. Committed to upholding full compliance with Indian regulatory frameworks, Mudrex is registered with the Financial Intelligence Unit (FIU) of India, ensuring strict adherence to legal standards.
Edul Patel highlighted Mudrex’s pioneering role in extending this service to Indian investors, underscoring the platform’s robust banking relationships that facilitate seamless transactions for users navigating the complexities of the Liberalized Remittance Scheme (LRS) process. Patel emphasized the added value for institutions, noting that while retail clients in India had limited access to spot Bitcoin ETFs through US stock investing companies, Mudrex aims to bridge this gap for institutional investors in the country.
As the first Indian crypto platform to offer this service, Mudrex’s strategic move aligns with its mission to simplify access to crypto ETFs for Indian investors. Leveraging the LRS route, Mudrex aims to provide a seamless gateway for investors seeking exposure to spot Bitcoin ETFs. Patel elaborated on the operational structure, detailing how Mudrex would facilitate transactions through broker partners in the US while its Indian subsidiary would oversee the spot Bitcoin ETF service.
Navigating the intricate regulatory landscape in India, Mudrex’s initiative comes at a time when regulatory bodies like the Reserve Bank of India (RBI) and the Finance Ministry hold differing views on cryptocurrency. While the RBI has expressed caution towards crypto assets, the Finance Ministry’s Intelligence Unit has registered several Indian crypto service providers and imposed significant taxes on the sector, emphasizing the importance of protecting the Indian economy and investors.
In addressing the regulatory framework surrounding the venture, Patel emphasized the compatibility of bitcoin spot ETFs with the Liberalized Remittance Scheme (LRS), which streamlines overseas investments for Indian investors. Mudrex’s platform will enable investments in spot Bitcoin ETFs, with a minimum investment threshold of $5,000 and a maximum limit of $250,000, in line with the RBI’s prescribed annual LRS limit.
Contrasting the tax implications of utilizing domestic crypto exchanges in India, which entail a 1% tax deducted at source (TDS) on crypto asset transfers and a 30% tax on profits, Mudrex’s approach aims to simplify transactions and leverage strong banking relationships to enhance user experience. Patel highlighted the platform’s commitment to facilitating seamless transactions, particularly through the LRS process, underscoring the significance of Mudrex’s services for investors.
Among Mudrex’s clientele of 350 institutions, Patel disclosed that around 20 have initiated the process of joining the platform for spot BTC ETF investments, with an average anticipated investment size of $110,000. This development signifies a significant step towards democratizing access to crypto ETFs for Indian investors, showcasing Mudrex’s commitment to innovation and regulatory compliance in the evolving landscape of cryptocurrency investments.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
