Invesco Mutual Fund (MF) has decided to delay the launch of its much-anticipated blockchain fund because of regulatory uncertainty.
“From the developments of the last few days, Indian lawmakers have been meeting participants in the country’s digital assets industry, which will likely culminate in a new legislative framework being formulated,” the fund house said in its press release.
The Reserve Bank of India (RBI) has recently raised concerns on cryptocurrencies and the government is also expected to come up with regulations around cryptocurrencies. The blockchain technology is used in cryptocurrencies, as well as it is seeing growing importance in providing safe passage for digital transactions and in cyber security.
Cryptocurrencies also known as crypto tokens have become quite popular among Indian investors recently due to the staggering returns they have delivered.
Several new platforms such as CoinDCX, WazirX and ZebPay have cropped up, that allow retail investors to trade on cryptocurrencies. This surging interest in cryptocurrencies among retail investors is what is prompting the government to regulate the market.
What is the Invesco Blockchain fund about?
The Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF) was to invest in Invesco CoinShares Global Blockchain UCITS ETF, an exchange traded fund listed on global stock markets.
This ETF in tun aims to mimic returns of Elwood Blockchain Global Equity Index, which consists of companies that get their revenues through the blockchain technology.