BlackRock Looking to Raise Its Share in India's $500 Bn Pool of Govt Bonds Market Via ETFs

BlackRock Inc, the world's largest fund manager, is looking to increase its stake in India's government bond market. The company aims to raise their share in the country's $500 billion pool of fully investible government bonds through exchange-traded funds (ETFs). This move comes as these bonds, which are under the Fully Accessible Route (FAR) with no foreign investment limits, are set to be included in JPMorgan's emerging market debt index starting June. The inclusion has been attracting attention from foreign money managers.

BlackRock launched its India bond ETF in February and currently manages $26 million in this fund. The ETF offers the cheapest fee among peers and has a weighted average yield of 7.14%. BlackRock's expertise in navigating complex markets like India provides them with an edge, especially in areas such as trade execution and tax minimization.

The firm is bullish on India, citing the country's high economic growth, stable currency, and relatively higher yields compared to other BBB-rated countries. With the Indian economy's positive macroeconomic backdrop and the rupee's stability, BlackRock is optimistic about its investment prospects in India.

BlackRock has launched an India bond ETF, which is designed as a convenient way for foreign investors to gain exposure to Indian government bonds. It simplifies the investment process by eliminating the need to navigate through the complexities of setting up specific accounts, managing exchange rate considerations, procuring the bonds directly, and handling tax considerations.

The India bond ETF by BlackRock is an Irish-domiciled UCITS (Undertakings for Collective Investment in Transferable Securities), which means it's regulated under European Union laws that allow for the sale of funds across EU countries. The fund is available to investors in Europe, the Middle East, Africa, and the Asia-Pacific region.

India's entry into global bond indices was discussed for nearly a decade but issues such as restrictions on foreign investors and local taxation delayed it.

In September 2023, JPMorgan had announced that it would include India in its emerging market bond index starting in June, where it will have a maximum weight of 10%. JPMorgan Chase & Co. has said it is on track to include India in its emerging market debt index from June.

In March this year, Bloomberg had announced that it will include India Fully Accessible Route (FAR) bonds in the Bloomberg Emerging Market (EM) Local Currency Government Index and related indices, to be phased in over a ten-month period, starting January 31, 2025.

The FTSE Russell is yet to include domestic bonds however.

Mirae Asset Mutual Fund Launches Mirae Asset Nifty 100 Low Volatility 30 ETF

(An open-ended scheme replicating/tracking Nifty 100 Low Volatility 30 Total Return Index)

Mirae Asset Mutual Fund, one of the fastest-growing fund houses in India, today announced the launch of Mirae Asset Nifty 100 Low Volatility 30 ETF. Mirae Asset ETF is a part of Mirae Asset Mutual Fund and is used for Exchange Traded Funds managed by Mirae Asset Investment Managers (India) Private Limited.

The New Fund Offer (NFO) opens on March 13th, 2023, and closes on March 21st, 2023. The scheme reopens for continuous sale and repurchase on March 27, 2023. The fund will be managed by the fund manager, Ms. Ekta Gala of Mirae Asset Mutual Fund. During the NFO, an investor can invest a minimum of Rs 5,000 or any quantum above that in multiples of Re.1. 

Nifty100 Low Volatility 30 Index is a Smart Beta ETF that aims to measure the performance of the low volatile securities in the large market capitalization segment. Smart Beta ETFs aim to potentially combine the benefits of both active and passive investing. Smart Beta ETFs are gaining popularity across the globe as they kind of have the potential to generate alpha by using different factors.

Key Highlights of Nifty 100 Low Volatility 30 Index

• Nifty 100 Low Volatility 30 index seems to have done well in the time of market distress.
• In short-term it may be used as an investment during the time of bear market/choppy market.
• In the long-term it can be potentially used for investment as the Nifty 100 Low Volatility 30 Index has generated higher risk-adjusted returns over a longer horizon.
• It has relatively lower drawdown compared to a broad market as well as other factor indices. 
• Provides alternate sectorial exposure which is different from the Nifty 100 Index.

Siddharth Srivastava, Head - ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. said, “Smart beta strategies typically capture factor exposures using systematic, rules-based approaches cost-effectively. Nifty 100 Low Volatility 30 Index aims to generate better risk-adjusted return over a longer horizon and provides alternate sectorial exposure. This fund may be used by investors who are cautious about portfolio volatility, and downside risk and are keen to generate long-term wealth with relatively lower risk.”

In times of uncertainty in the markets like these, low volatility ETFs may be considered for investments. further explained Srivastava.

Product Label & Disclaimers:

Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited.

The information contained in this document is compiled from third-party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax, or financial implications.

For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in

BSE/NSE Disclaimer: 􀀀Every person who desires to apply for or otherwise acquires any unit of this Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever. For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in

Europe’s 1st Bitcoin ETF To Be Launched on Euronext Amsterdam By Jacobi Asset Management

First exchange-traded equity instrument for institutional investors to access Bitcoin in Europe

Largest exchange to list a Bitcoin spot ETF globally

First primary listing of a Crypto fund in the Netherlands

In a first for Europe, Jacobi Asset Management (Jacobi) announces the launch of the Jacobi Bitcoin ETF (the “ETF”) (BCOIN, ISIN: GG00BMTPK874) which will be listing on Euronext Amsterdam, part of Euronext, the leading pan-European marketplace from July.

The Jacobi Bitcoin ETF, which received regulatory approval from the Guernsey Financial Services Commission (GFSC) in October 2021, will begin trading in July on the Euronext Amsterdam Exchange under the ticker BCOIN. Custodial services will be provided by Fidelity Digital AssetsSM with Flow Traders and DRW facilitating trading as market makers.

CEO Jamie Khurshid said: “The Jacobi Bitcoin ETF will enable investors to access the underlying performance of this exciting asset class via a well-established and trusted investment structure. Our goal at Jacobi is to make digital asset investments simpler and more familiar for institutional and professional investors. We are delighted to be working with all our premier partners including Fidelity Digital Assets and Flow Traders who have supported us from inception and are an integral part of this European first as we list on Euronext Amsterdam”.

He added: “This is a significant step forward for Jacobi Asset Management. We have an ambitious vision and look forward to bringing an innovative product pipeline to the market very soon.”

“We are excited to be acting as lead market maker for Europe’s first Bitcoin ETF, which is another milestone in the development of the institutional digital assets space. This is also aligned with the growing demand from institutional investors who are looking to diversify their portfolios by adding Bitcoin and other digital assets. Flow Traders has been a longstanding supporter of enabling exposure in digital assets and we are delighted to be working with Jacobi Asset Management on this launch.” commented Edd Carlton, Institutional Digital Asset Trader at Flow Traders.

Legal support through the regulatory and listing process was facilitated by independent Dutch law firm Kennedy Van der Laan.

Emanuel van Praag, Attorney from Kennedy Van der Laan commented: “The first listed crypto ETF in the EU is indeed a proud achievement and we are happy that we were able to assist Jacobi Asset Management to achieve this goal.”

Jacobi Asset Management will provide European institutional and professional investors with access to the Jacobi Bitcoin ETF via a simple investment vehicle for a 1.5% annual management fee.

For further information, visit Jacobiam.com

Torus Kling Blockchain IFSC To Launch Asia's First ETF

It was recently announced that Asia's first exchange-traded fund, ETF, will be launching soon. The ETF is set to be launched by an equal joint venture of Kling Trading India and Cosmea Financial Holdings, called Torus Kling Blockchain IFSC.

This will be the first ETF of Asia and according to the reports, it is ready to be launched by March 2022 in GIFT - Gujarat International Finance Tech - city. According to the reports, the venture has already signed the Memorandum of understanding with BSE International.

As a result, the BTC and ETH Futures ETF will be launched in addition to the Asian Discount certificates which will be tracking the performance of large-cap Metaverse companies in the US and European markets.

The product will be available for trading on the IFSC of the GIFT city. According to official reports, the ETF will be launched in a sandbox arrangement which is possible thanks to the International Financial Services Centers Authority, IFSCA - a regulatory agency of financial centers in Special Economic Zones.

Sandboxes are very commonly used in the industry as a way of testing different types of live trials of new products. It is a very famous way in the fintech industry to perform trials of new services. This is a great way for industry participants to ensure having a balance between innovation in the market and the protection of individuals.

Waiting for Regulatory Approvals

According to the CEO of the India International Exchange, the application to the IFSCA has already been made and further steps will be taken after receiving all the regulatory approvals. According to the Torus Kling Blockchain representatives, they are targeting as much as $1 billion assets under management in the first two years.

The announcement about Asia's first ETF comes soon after the steps taken by US and Canadian regulators, which allowed trading of Bitcoin and Ethereum ETFs on the stock exchanges.

BTC ETFs have long been a subject of discussions around the world, many claiming that it would be another step for the crypto industry towards reaching the long-awaited mainstream exposure and adoption.

Crypto ETFs can be a great addition to an individual’s portfolio and they can be used to track the performance of different cryptocurrencies without having to invest in digital tokens themselves. There also are future ETFs available on the market which are backed by futures contracts and work by looking at the volatile prices of cryptocurrencies in the market.

The popularity of the cryptocurrency trading market has increased dramatically over the past few years. According to some estimates, the volume of crypto derivatives trading is around $3.2 trillion, and the volume of spot trading is about $2,7 trillion.
Crypto Trading in India

Cryptocurrency trading has been growing around the world, including in India. People in all parts of the country are very interested in the cryptocurrency trading market. Even those living in the rural areas of the country are showing a massive interest in the cryptocurrency trading market.

There are many reasons behind the huge popularity of the crypto industry. One of the main reasons is that it has become very easy to start trading cryptocurrencies. There are hundreds of crypto exchanges available in the market, which offer retail traders the opportunity to get started in the crypto market in a matter of a few minutes.

Traders don’t even have to know how to trade cryptocurrencies on their own, a majority of the crypto exchanges offer traders algorithmic trading opportunities. By using automated trading systems, traders are able to analyze the price movements in the market in a matter of a few minutes.

Not only that, but cryptocurrency trading robots are also able to automate the whole process of crypto trading, which makes it easier for market participants to make profits.

However, while the demand for high-quality cryptocurrency trading services has been increasing dramatically in India, the country is still far from establishing a regulatory system that would benefit the safety of traders while also ensuring further development of the market.

The Parliament of India was supposed to hold a hearing of the Crypto Bill during the winter session of the Parliament. However, it was noted by the local media that there were still some changes that needed to be made in the bill, which forced the parliament to postpone the hearing. As of now, the parliament plans to hold the hearing in February.

The cryptocurrency market has been developing rapidly over the past few years. The market has seen massive adoption in India, but the government of the country has failed to adopt a regulatory framework for the cryptocurrency market.

India has been working on developing a Crypto Bill for a long time now. As of now, market experts believe that it is now important for the country to find a way to adopt a regulatory framework that supports the further development of the market, while also guaranteeing the safety and security of retail traders.