Invesco India and CoinShares to Launch ‘Feeder Fund’ of Blockchain Stocks

The fund opens to Indian investors next week after getting the go-ahead from SEBI.

Nov 15, 2021 at 3:54 p.m. UTC
Updated Nov 15, 2021 at 4:54 p.m. UTC

Invesco is giving Indian investors exposure to blockchain technology companies, such as Coinbase and MicroStrategy, through a new pooled fund that invests in several sub-funds.

The Invesco CoinShares Global Blockchain ETF Fund of Fund will be open to Indian investors between Nov. 24 and Dec. 8 this year, according to literature shared by Invesco Asset Management India.

CoinShares and Invesco Asset Management India are launching the vehicle, which relies on an index of 50 publicly traded companies with exposure to crypto assets. That includes everything from Galaxy Digital to Square to Tesla.

The new fund, which is available to Indian investors, aims to generate returns by investing predominantly in units of Invesco CoinShares Global Blockchain UCITS ETF, an overseas exchange-trade fund (ETF). The fund will give investors access to blockchain technology companies with exposure to global companies or businesses, which are not available in India for investment.

“This [Invesco CoinShares Global Blockchain ETF Fund of Fund] is nothing more than a feeder fund allowed to invest into an equity Irish domiciled blockchain UCITS ETF, and there is no direct investment in crypto or bitcoin,” said crypto ETF expert Laurent Kssis, director of CEC Capital.

In September, Atlanta-based Invesco applied with the Securities and Exchange Board of India (SEBI) to launch a mutual fund that invests in blockchain companies. The asset manager has also applied to the U.S. Securities and Exchange Commission (SEC) to list an ETF with bitcoin exposure.

Recently, there have been more and more ETFs being listed, indicating some amount of market maturity and acceptance from regulators. In a major moment for the industry in October, the SEC greenlit its first batch of U.S. bitcoin futures ETFs.

The arm’s-length approach to crypto investing may be the only option for some.

“Some investors may think there is a shortcut to investing in an equity blockchain fund where they have exposure to crypto. However, with the current hype and certain crypto bans in India, many may be forced to invest as this is the only choice available,” said Kssis.

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Tanzeel Akhtar is a CoinDesk news reporter based in Europe.